Card Acquiring Agreement

Card associations consider a participating merchant a risk if more than 1% of payments received result in a retrobooking. [2] Visa and Mastercard impose fines on acquiring banks that retain merchants with high repayment frequency. To bear the cost of the fines collected, acquiring banks are inclined (but not obliged) to pass on such fines to the trader. These fees are usually charged to the dealer. But as important as it is to understand and manage this aspect of your agreement, it is also (if not more important) to protect your business through the structure of your contract. Before signing with a purchasing processor, read this 3.1 The merchant agrees to comply from time to time with the rules of Scheme issued by the card schemes. The applicable payment methods/card schemes are defined in merchant Services Contract. The merchant acknowledges that the scheme rules are available on the respective websites of the Card Schemes. In case of disagreement between Bambora and the trader on the interpretation of the scheme rules, Bambora has the final decision. It`s typical for an Acquirer to have presentation agreements. These agreements will be different for small, medium, large and extra-large traders. Here we will discuss L-XL companies.

You need to have a discussion tailored to your expected turnover. Acquiring banking relationships allows merchants to sell goods and services using electronic payment methods. This partnership includes obtaining information from the reseller`s payment technology, communicating with card issuers through the acquirer`s network, receiving authorization, and billing the transaction to the merchant`s account. If merchants wish to carry out credit and debit card transactions on their website, they must enter into a contract with acquiring banks. While sales agreements generally apply to suppliers of goods or services, they can also affect foundations and non-profit organizations….