2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Banking structures and other financial organizations in their activities often operate with terminology borrowed from the English language. Having a basic knowledge of this global means of communication, one can understand some terms, for example, "prolongation (extension) of an account", "debit payments" and others. But there are times when a literal translation can say little about the actual meaning of any operation. For example, acquiring - what does it mean? Consider the meaning of this concept.
The concept of "acquiring"
The activity of financial organizations to provide settlement, information and technological services using payment cards and equipment specially designed for these works is acquiring. What does this mean in easier to understand language?
Acquiring (in translationfrom English "acquiring" - acquisition) is an opportunity to pay for purchases in hypermarkets, communication services and the like, through payment (credit) cards issued by banking structures. In most Western countries, such a settlement policy has long existed and is widespread.
Types of acquiring
There are two types of this activity:
- Merchant acquiring. To carry out this process, POS-terminals are used, while there is a physical card, the account of which is debited, and the owner's signature is put on the check.
- Internet acquiring represents similar monetary transactions carried out by a special organization called "Processing Center". At the same time, the payment card is not physically present, and signature identification is not carried out here.
Highlights
It is very convenient to pay for services and goods in a non-cash way, which explains the widespread use of such a process as acquiring (what this means has already been discussed above). This online process is carried out as follows: the buyer enters data (initials, card number, bank name, and so on) in a special form on the website of the online store and at the end confirms the payment.
In this case, the online process can take place in several ways:
- payments are credited to the account of the online store itself. However, this method is considered to be irrelevant today due tofor a high percentage of risks;
- payments are made through electronic money systems;
- acquiring operations are carried out using payment cards of electronic systems with partial transfer of risks to these organizations.
It can also be noted that in case of non-compliance of services with the proper level or low quality of the purchased goods, the buyer can claim his money back within 180 days. The cancellation procedure is called Chargeback, and to minimize the occurrence of such cases, card regulators have imposed a system of fines on the sellers of services or goods. The tolerance level for the VISA card system is 2%, and for MasterCard - no more than 1%.
This service can be activated by both banks and payment processors, while it can be noted that the tariff rates and conditions of these two financial organizations are practically the same.
Payments for utilities, payment for mobile communications, transfer of funds - this is an incomplete list of the opportunities that acquiring provides. What this means for each person can be understood without explanation - getting rid of queues, making purchases at any time of the day, and so on. We can say that this procedure is one of the components of a developed society in economic and technical terms.
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