What is merchant acquiring
Merchant acquiring is a type of service for accepting bank card payments using POS terminals in merchant and service enterprises. The main difference from other types of acquiring (mobile and when paying via the Internet) is that a separate device (terminal or imprinter) works with the card, which prints paper receipts to confirm the operation (some mobile terminals already know how to print fiscal receipts, but this is rather an exception to rules, since most of the accounting documents are sent to the client by mail or phone in the form of SMS). Due to the fact that such a payment scheme is used most often in offline stores (supermarkets, offices, retail outlets, etc.), acquiring is called "shopping".
Payment by credit card through the terminal is characterized by a high degree of transaction security both for the merchant and the buyer, as well as a shorter transaction processing time compared to mobile terminals or payment via the Internet.
The payment system is responsible for processing, providing guarantees to both parties to the transaction (buyer and seller). A bank that provides a merchant acquiring service is a member of such a system (national or international, such as VISA or MasterCard), like the bank that issued the card to the owner.
How to choose acquiring for a store
Types of POS terminals for acquiring
Conventionally, terminals for accepting payments from bank cards can be divided into the following groups:
All terminals can be classified according to technical parameters:
Technology operation scheme
Only an individual entrepreneur or a legal entity that has entered into an acquiring agreement with a bank can accept non-cash payments.
The organization of accepting payments is as follows:
How to choose
To make the right choice of a bank for merchant acquiring, you need to take into account many factors:
Only after a detailed analysis and calculation of all components can the most optimal choice be made.
HOW TO CHOOSE A POS TERMINAL FOR ACQUIRING
A POS terminal is a special device that accepts bank cards for payment. It will focus on the procedure for choosing equipment depending on its functionality and the tasks it faces.
Just in case, we remind you that according to the current legislation, companies whose annual income exceeds the established norms for microenterprises. payment for their clients. Failure to comply with this requirement may result in an administrative fine.
On the other hand, any business, no matter how large it may be, is interested in accepting various payment methods, since this approach significantly expands the client base, and the company's service level and consumer loyalty grow.
Types of banking terminals
Thus, the devices can be most clearly divided into classes according to their main design features:
If independent POS terminals can work as before (without any re-registration in the tax office, software modifications, etc.), connecting to the existing equipment of the seller, then POS systems and SMART terminals must necessarily comply with the requirements of Law (according to which checks are electronically transferred to the database of the Federal Tax Service).
Main manufacturers
You can buy a POS terminal of the following brands:
However, it is impossible to talk only about the purchase of equipment, because any terminal should not only work with customer cards, but interact with the acquiring bank, by the way, payment terminals can also be bought from the acquirer (this is the most common scheme).
How to choose a POS terminal
For the above reason, the question of which POS terminal to choose for your merchant is connected not so much with the choice of the equipment itself, but with the bank that will process incoming payments.
The acquirer most often offers ready-made solutions (POS or mPOS terminals leased out under a lease agreement, in installments, at full cost) or clearly indicates technical restrictions on the purchased equipment separately (the models of devices with which the acquirer can work will be listed). If your terminal model is incompatible with the acquirer's software, you may be denied its service by offering your own version.
It is noteworthy that the bank's commission may also depend on the method of acquiring (renting) banking terminals.
Due to the fact that special requirements are imposed on the equipment that prints fiscal receipts (a defective or vulnerable device to attacks by malefactors is dangerous not only for customers, but also for the reputation of acquiring banks), it is most profitable for a bank to provide its own verified software and terminals, which operate he will follow up in accordance with a separate agreement or an additional agreement to the acquiring agreement. This may incur a separate fee.
Which POS terminal to choose for a small store
As an example, consider how to approach the choice of a payment terminal in a small retail store.
The specificity of the retail outlet is such that the store depends on communications provided by the lessor of the premises, among which very often Internet access does not appear. Power outages are frequent. The flow of buyers is small; among the general mass, card payments are rare (although it all depends on the buying audience). The cash register is usually not connected to a unified accounting system and operates as an independent equipment.
Thus, the POS terminal should be as autonomous as possible, be able to print receipts, have a built-in battery, and go online without third-party connections.
This description includes:
All that remains is to choose a bank for acquiring services with favorable tariffs, the cost of equipment in most cases can be neglected for a piece purchase (if it is sold separately, and not leased).
Mobile terminals are notable for their low cost, but they also have a negative side - a long processing time for one payment transaction. If your store needs a fast and reliable way of accepting non-cash payments, it is better to give preference to a portable POS terminal.
Smart checkout is a comprehensive solution with wide functionality for small stores and retail outlets, at the same time, it is mobile, autonomous, can be integrated with POS terminals and fully complies with the requirements of the new legislation. It should be chosen when fully re-equipping cash registers or at the start of a business.
Merchant acquiring is a type of service for accepting bank card payments using POS terminals in merchant and service enterprises. The main difference from other types of acquiring (mobile and when paying via the Internet) is that a separate device (terminal or imprinter) works with the card, which prints paper receipts to confirm the operation (some mobile terminals already know how to print fiscal receipts, but this is rather an exception to rules, since most of the accounting documents are sent to the client by mail or phone in the form of SMS). Due to the fact that such a payment scheme is used most often in offline stores (supermarkets, offices, retail outlets, etc.), acquiring is called "shopping".
Payment by credit card through the terminal is characterized by a high degree of transaction security both for the merchant and the buyer, as well as a shorter transaction processing time compared to mobile terminals or payment via the Internet.
The payment system is responsible for processing, providing guarantees to both parties to the transaction (buyer and seller). A bank that provides a merchant acquiring service is a member of such a system (national or international, such as VISA or MasterCard), like the bank that issued the card to the owner.
How to choose acquiring for a store
- Types of POS terminals
- Selection Tips
Types of POS terminals for acquiring
Conventionally, terminals for accepting payments from bank cards can be divided into the following groups:
- Modular. Here, the individual functions are split into different hardware blocks. To combine them into one system, a computer or other device is often needed that is responsible for the operation of application software (smartphones or tablets are also suitable for these tasks). The modular approach allows you to build complex POS systems for the full range of tasks solved by the cash register module. Examples of individual blocks:
- Pinpad (needed to enter a PIN code). They can connect to both POS systems and standalone POS terminals. The most interesting option for the retail market is to connect to online checkouts. In this case, some of the functions are completely transferred to this node, or rather:
- contactless reader;
- PIN-code keypad;
- display.
- Card reader for reading a particular type of card.
- Printer for printing receipts / slips.
- Pinpad (needed to enter a PIN code). They can connect to both POS systems and standalone POS terminals. The most interesting option for the retail market is to connect to online checkouts. In this case, some of the functions are completely transferred to this node, or rather:
- Autonomous. These are devices that represent a monolithic system of all the necessary blocks. That is, such terminals already have their own card reader, printer, pinpad, etc., and can work completely autonomously. But to include them in a single accounting system of a trading enterprise, they can be equipped with interfaces (for example, to connect to a cashier's workplace or to an available network with Internet access). Standalone POS terminals can be divided into the following subtypes:
- Stationary. Most often they do not have a built-in battery or its capacity is designed for a short battery life, interfaces for Internet access are mostly wired: RG-45 (LAN), RS-232, etc. But to ensure uninterrupted communication, they can be equipped with built-in GPRS modems.
- Portable / portable. They can work for a long time even without external power supply. Equipped with a built-in modem for 2G / 3G / 4G communication and / or other interfaces for wireless connection: Wi-Fi, Bluetooth, etc.
- Specialized. Mostly this is built-in equipment that is used in self-service devices. In turn, such terminals can be stand-alone or modular. Private types of specialized POS terminals include the following:
- Signature Capture Devices.
- Equipment with biometric identification (fingerprints, face, etc.).
- Embedded POS-terminals (for vending machines, self-service checkouts, etc.).
- Software. Before the widespread introduction of contactless payments, the only alternative to terminals was Internet acquiring. But NFC modules in smartphones and on bank cards made another type of payment possible - without a terminal at all. The smartphone's NFC module acts as a reader. The bank application and its servers are responsible for all other operations.
- Mobile terminals (m-POS). They can be called modular devices rather than stand-alone ones, since structurally they consist only of a reader and a pinpad (sometimes even just a reader). And a third-party device (a smartphone or tablet with an application installed on it) is responsible for the calculations. Banks or special services offer them as a separate solution with their own tariffs and a separate agreement.
- Online cash registers. Here the POS terminal can be incorporated into another monolithic or composite device. The online checkout is capable of taking over all the functions of the checkout module. The basic set already contains:
- Computing device. Usually this is a tablet based on a popular operating system with special software (with the ability to install additional ones if necessary).
- Fiscal accumulator. Compliant with the requirements (capable of exchanging data with the OFD).
- Receipt printer.
All terminals can be classified according to technical parameters:
- type of cards to be read (magnetic stripe, with a chip, contactless);
- type of connection (wired / wireless and in the context of specific technologies: LAN, 2 / 3G, Wi-Fi, etc.);
- additional features (interfaces for connecting auxiliary equipment, integration with cash registers and enterprise information systems).
Technology operation scheme
Only an individual entrepreneur or a legal entity that has entered into an acquiring agreement with a bank can accept non-cash payments.
The organization of accepting payments is as follows:
- The cashier clarifies the payment method with the client, if the payment is made from the card, the purchaser is provided with the acquiring bank's terminal or the cashier asks to transfer the card to him.
- The card is rolled with a magnetic stripe, inserted by a chip or applied to the display of a POS terminal (only for cards with NFC - contactless payments). The device asks for authorization (entering a PIN-code, providing documents with a check of the list, etc.).
- If the authorization is successful, the acquiring bank blocks the purchase amount on the card account with the issuing bank. If there is not enough money, the payment is interrupted.
- If the limit allows you to complete the purchase, a positive answer is returned. A check (slip) is printed on the withdrawal of funds, the buyer picks up the goods.
- The acquiring bank confirms the successful purchase to the issuer, the funds are finally debited from the cardholder's account in favor of the acquirer.
- The transaction between banks is closed by clearing files.
- The amount is transferred to the account of an enterprise (legal entity or individual entrepreneur) at intervals specified in the acquiring agreement.
How to choose
To make the right choice of a bank for merchant acquiring, you need to take into account many factors:
- average check amounts,
- turnover per month,
- terms of rent, purchase or connection of own terminals (including models supported by the bank),
- what current account does the service work with (a number of banks connect acquiring only for withdrawal to accounts opened in their own network, some can withdraw to third-party accounts, but with their own additional commission, etc.),
- penalties for unprofitability,
- supported payment systems (many banks avoid systems that are not widely used in your country, such as JCB, China UnionPay, AmericanExpress, DinersClub International, etc. And their use in your business model may be mandatory, which will radically affect the procedure for choosing an acquiring bank) ,
- RCO tariffs (if an account will be opened with an acquiring bank),
- the cost of equipment maintenance.
Only after a detailed analysis and calculation of all components can the most optimal choice be made.
HOW TO CHOOSE A POS TERMINAL FOR ACQUIRING
A POS terminal is a special device that accepts bank cards for payment. It will focus on the procedure for choosing equipment depending on its functionality and the tasks it faces.
Just in case, we remind you that according to the current legislation, companies whose annual income exceeds the established norms for microenterprises. payment for their clients. Failure to comply with this requirement may result in an administrative fine.
On the other hand, any business, no matter how large it may be, is interested in accepting various payment methods, since this approach significantly expands the client base, and the company's service level and consumer loyalty grow.
Types of banking terminals
Thus, the devices can be most clearly divided into classes according to their main design features:
- Stationary POS terminals. This class of devices was developed and positioned as a payment terminal for a store or another trade and service enterprise (merchant), which already has a cash register and needs to expand the possibilities for accepting non-cash payments from cardholders. Thus, stationary models are most often not equipped with batteries, they have a wired interface for connecting to the Internet (a local network of an enterprise with access to a global network). But nevertheless, these are independent devices comparable to a separate cash register, since they can print receipts in confirmation of transactions on the client's card account and have their own display for interacting with the device;
- Portable POS terminals. These are independent devices with their own display, receipt printer (built-in miniature fiscal apparatus), battery and module for access to the mobile network. They have everything you need to accept bank cards for payment without additional equipment (although they can be integrated into the existing cash register module operation system);
- Payment terminals for mobile acquiring. mPOS terminals, on the other hand, are portable devices. They are most often equipped with a built-in battery, do not have a wired interface for connecting to a local or global network (they cannot connect to the mobile network of a cellular operator on their own, and use the capabilities of smartphones and tablets to which they are connected hardware or via a wireless LAN using technology Bluetooth or Wi-Fi) cannot act as a standalone device. For full-fledged work, they need a tablet or smartphone on which a special application is installed for making payments online;
- POS systems. These are, in fact, ready-made jobs for cashiers. They are completed from separate devices / modules, among which there may be: fiscal devices, barcode scanners, hardware keyboard, display for displaying the total amount of the receipt, a system unit with an installed operating system and software for interacting with additional equipment, etc. Accordingly, the functionality and the capabilities depend on the set of modules and hardware nodes included in the delivery;
- SMART terminals. Currently, a related class of devices is being developed and implemented - smart cash registers. This is a definitively complete system, consisting of a tablet, an mPOS terminal and a fiscal apparatus. Scanners, EGAIS transport modules, trading terminals can optionally be connected. Through a special service store, software extensions for the smart terminal can be downloaded (loyalty programs, time tracking, etc.);
- PIN pads. They differ from POS terminals by the lack of autonomy. That is, it is not a full-fledged payment terminal, but just an input device, albeit with wide capabilities (some models offer contactless reading, entering a pin code on the keyboard, a magnetic stripe reader, a contact chip reader, etc.). The PIN pad must be connected either to a POS system or to a POS terminal.
If independent POS terminals can work as before (without any re-registration in the tax office, software modifications, etc.), connecting to the existing equipment of the seller, then POS systems and SMART terminals must necessarily comply with the requirements of Law (according to which checks are electronically transferred to the database of the Federal Tax Service).
Main manufacturers
You can buy a POS terminal of the following brands:
- Ingenico,
- Verifone,
- IRAS,
- PAX,
- Yarus,
- Atol.
However, it is impossible to talk only about the purchase of equipment, because any terminal should not only work with customer cards, but interact with the acquiring bank, by the way, payment terminals can also be bought from the acquirer (this is the most common scheme).
How to choose a POS terminal
For the above reason, the question of which POS terminal to choose for your merchant is connected not so much with the choice of the equipment itself, but with the bank that will process incoming payments.
The acquirer most often offers ready-made solutions (POS or mPOS terminals leased out under a lease agreement, in installments, at full cost) or clearly indicates technical restrictions on the purchased equipment separately (the models of devices with which the acquirer can work will be listed). If your terminal model is incompatible with the acquirer's software, you may be denied its service by offering your own version.
It is noteworthy that the bank's commission may also depend on the method of acquiring (renting) banking terminals.
Due to the fact that special requirements are imposed on the equipment that prints fiscal receipts (a defective or vulnerable device to attacks by malefactors is dangerous not only for customers, but also for the reputation of acquiring banks), it is most profitable for a bank to provide its own verified software and terminals, which operate he will follow up in accordance with a separate agreement or an additional agreement to the acquiring agreement. This may incur a separate fee.
Which POS terminal to choose for a small store
As an example, consider how to approach the choice of a payment terminal in a small retail store.
The specificity of the retail outlet is such that the store depends on communications provided by the lessor of the premises, among which very often Internet access does not appear. Power outages are frequent. The flow of buyers is small; among the general mass, card payments are rare (although it all depends on the buying audience). The cash register is usually not connected to a unified accounting system and operates as an independent equipment.
Thus, the POS terminal should be as autonomous as possible, be able to print receipts, have a built-in battery, and go online without third-party connections.
This description includes:
- mobile,
- portable,
- SMART terminals (the latter must necessarily comply).
All that remains is to choose a bank for acquiring services with favorable tariffs, the cost of equipment in most cases can be neglected for a piece purchase (if it is sold separately, and not leased).
Mobile terminals are notable for their low cost, but they also have a negative side - a long processing time for one payment transaction. If your store needs a fast and reliable way of accepting non-cash payments, it is better to give preference to a portable POS terminal.
Smart checkout is a comprehensive solution with wide functionality for small stores and retail outlets, at the same time, it is mobile, autonomous, can be integrated with POS terminals and fully complies with the requirements of the new legislation. It should be chosen when fully re-equipping cash registers or at the start of a business.
