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Processing online payments properly is key if you want to have a successful online business. Whether you’re an owner of a small online store or have a large online marketplace, you need a mechanism for your customers to pay you with their bank cards. That’s where internet acquiring services come into play.

So, what is an internet acquiring service? It’s a vital service for any business that wants to accept online card payments. How does it work? Let’s discuss all of it and more in this article. 

Understanding What Internet Acquiring Is

Internet acquiring, or online acquiring, is a service that allows merchants to receive card payments over the internet offered by teams like Tranzzo. It is provided by an acquiring bank or an acquirer — a bank that has permission to process card transactions on a merchant’s behalf.

When the consumer makes an online payment via a debit or credit card, the acquiring bank initiates the transaction. It’s communicating with the customer’s bank (the issuing bank) to clear and accept the payment. In essence, the acquirer assumes the position of the merchant bank in accepting payments digitally in a secure infrastructure.

Unlike traditional acquiring, which deals with a physical branch-based point-of-sale card (shop) transaction, internet acquiring involves a specialized design. It’s made specifically for online ecosystems.

It often is bundled with or sold alongside a payment service provider (PSP) or payment gateway, simplifying technical installation for businesses.

Key Parts of the Internet Acquiring Ecosystem

Multiple parties have to coordinate to make up every card transaction online. Understanding who they are helps in understanding the process. So the key parties are:

• Merchant. The online shop or company that wants to accept card payments.
• Customer (Cardholder). The person who is buying with a credit or debit card.
• Acquiring Bank (Acquirer). The bank that accepts payments on behalf of the merchant.
• Issuing Bank. Issuer of the customer’s credit or debit card.
• Card Network. Organizations that manage the card infrastructure and facilitate communication between banks.
• Payment Gateway/PSP. A software interface or service provider that connects the merchant website to the acquiring bank and card networks. It handles data encryption and transaction routing.

All of these parties play a role in the process. It’s key to make sure the payment process is secure and effective, all the way from the customer to the merchant.

Internet Acquiring: The Process Step-by-Step

So, how does the whole process work exactly? Let’s discuss what happens when a payment is processed in an online store. While the transaction takes mere seconds in real time, there are more than several steps behind the scenes.

1. Customer Places an Order

A shopper navigates to a page of an eCommerce company, selects products, and proceeds to checkout. They input card information and click on “Pay Now.”

2. Payment Gateway Sends the Data

The payment information is routed securely via a payment gateway to the acquiring bank. The data is encrypted to preserve sensitive card data.

3. Acquirer Requests Payment from Card Network

The acquiring bank makes the payment request to the card network, which then forwards it to the issuing bank.

4. Issuing Bank Approves or Rejects

The issuing bank checks if the customer has funds or available credit and if the transaction is valid. If everything goes well, it approves the payment.

5. Authorization Is Sent Back

The authorization returns via the card network and the acquirer, all the way down to the payment gateway and merchant. Now the sale is approved.

6. Settlement and Fund Transfer

At the end of each processing cycle (usually daily), the acquiring bank settles funds, crediting the money minus transaction fees to the merchant’s account.

This streamlined process allows merchants to be paid and customers to experience a fast and seamless checkout.

Benefits of Internet Acquiring for Online Companies

Using services for the internet acquiring from firms like Tranzzo offers several benefits. Especially for companies established online or seeking expansion digitally, there are many advantages to consider.

Secure Payments

Anti-fraud solutions are implemented by acquiring banks to impose stringent security requirements like PCI DSS compliance and 3D Secure authentication.

Wider Customer Reach

International card brands allow businesses to serve customers globally without extra effort.

Better Checkout Experience

Quick and secure payment authorization means lower cart abandonments and improved user experiences.

Real-Time Transaction Processing

Internet acquiring systems instantly process payments, and thus the merchant and customer get immediate confirmation.

Access to Advanced Tools

Many acquirers provide dashboards, analytics, and refund/chargeback management tools to assist businesses in optimizing payment handling.

Common Challenges and Considerations

Internet acquiring brings a lot of opportunities to online merchants, but there are also some things to consider.

Transaction Fees

Banks that accept acquiring typically bill per transaction or a percentage of the gross amount. Volumes, risk levels, and card types are factors in determining fees.

Chargebacks and Fraud

There is an increased risk of chargebacks and fraudulent transactions with online payments compared to face-to-face transactions. Adequate fraud prevention must be in place.

Currency and Cross-Border Issues

Intermediaries can have currency exchange fees and different requirements based on the geography of the customer. 

Technical Integration

A few companies may need developer assistance to integrate the payment gateway or acquiring service into their site or app. 

Compliance Requirements

Merchants need to meet security needs like PCI DSS, which regulates how card details are handled.

Though these pose difficulties, the majority of acquiring providers offer support and tools to help prevent risks and minimize integration.

Conclusion

Internet acquiring is the backbone of electronic payment systems. It allows merchants to accept credit and debit card payments online through cooperation with acquiring banks and leveraging secure payment infrastructure.

Understanding how internet acquiring works — and choosing the right provider — can make a significant difference. It can help your business’s ability to grow online, serve customers securely, and get paid efficiently. Whether you’re launching a new online store or scaling an existing one, having the right internet acquiring setup is key for long-term success.

As the business of online commerce changes, so will the services and tools driving it. And internet acquiring will remain one of the most important financial foundations for doing business on the web.