Difference Between ‘Acquiring Bank’ and ‘Issuing Bank’

Sydney VaccaroIndustry TermsLeave a Comment

Difference Between ‘Acquiring Bank’ and ‘Issuing Bank

Acquiring and issuing banks are some of the necessary parties that make payments happen. It is important for merchants to understand what these parties do, how they connect in the payments process, and what their roles are in the dispute process. Without further ado: An acquiring bank (the merchant’s bank) is a financial institution that initiates and maintains contractual agreements with merchants for accepting and processing credit card transactions. The acquiring bank is also referred to … Read More

What is MATCH?

Emily VuittonIndustry Terms7 Comments

MATCH stands for the MasterCard Alert to Control High-risk Merchants and it’s a system where acquirers are given the opportunity to review risk information before entering into an agreement with a merchant. MATCH is mandatory for all MasterCard acquirers and its database contains information about merchants and merchant account owners who have been terminated by an acquirer(s) in the past. The information contained in MATCH helps acquirers assess the reasons for previous merchant terminations to see … Read More

Pass-Through Pricing: As Good As It Gets?

Scott StoneIndustry Terms1 Comment

Interchange Plus Pricing

Whether you call it interchange plus pricing, true pricing, cost plus, or pass-through pricing, it is widely considered the most transparent and merchant-friendly credit card processing pricing structure. The savvy CFO has insisted her credit card processor utilize pass-through pricing for years now, but is that what’s really being provided? Pure Pass-Through Pricing Pass-through pricing is simply a pricing model used by credit card processors that charges merchants the industry-wide interchange fees plus a small fixed … Read More