10 Acquirer

  1. payments from an acquiring perspective, focusing on the
    1. different payment models,
    2. types of transactions and payment processing from both online and offline (Terminal Pos) perspectives.
    3. different types of acceptance models and the associated hardware,
    4. high-level overview of chargebacks and disputes and their relationship with risk and fraud.

At the end of this training, you will have a good understanding of acquirer processing and the role of a payment gateway and end to end transaction flows, interchange and the players involved in acquirer processing.

Operating model

4- party model (Visa, Mastercard)

3-party model (Amex, Diner)

Issuer and Scheme are the same.

Acquirer Responsibilities

  1. Underwriting (KYB, AML)
  1. Onboarding
  1. Payments processing
  1. Fund management
  1. Scheme Compliance

PSP
(Payment Service Provider having Gateway)

It can integrate to one or more acquirers.

Scenario: A Merchant want to have:
i) Visa, Mastercard, Amex
ii) Alternative payments emoney

Endava Xelerator Payment Gateway

MVP and Demo

Also, it can process several APM
(alternative payment methods) - ApplePay, WeChat

Wallet having (Tokenized) Card is considered as APM.

For Card, Terminal is required.
Anything except Card is considered APM

Transaction Types

  1. Authorization & 2. Capture

Both steps are done together.

Scenario: Merchant and Customer have same bank (i.e. Acquirer and Issuer are same)

Termed as 'On-us' transaction. These will bypass the scheme. Less cost and more profit.

Card blacklisting will be done by Issuer.
List can be hold by Marchant & Acquirer along with Issuer.

  1. Clearing & 4. Settlement

Transaction must be cleared before it can be settled.

Clearing

Settlement

Payment processing

(Transfer of Funds)
Actual Money movement