Payment Industry Acquirers Are Now Issuers Too
Most merchants know the payment industry consists of two separate service providers; Merchant Acquirers and Card Issuers. Well, that was so until recently when some companies decided to offer both services—Acquirers are now issuing payment products to retailers. Now, merchants can have their acquirers issue them payment hardware— and enjoy all services from a single vendor.
According to Acquirers, offering both services will cut the price of merchant services for retailers and provide a conducive environment for the growing number of startups. This is also the opportunity for Acquires to generate more income and upgrade merchant services for the benefit of the online retailer.
Interchange: The main reason Acquirers are Issuing
While we may think interchange comes at an extra cost to Acquirers, it remains an important revenue source for Issuers. And now, Acquirers want to benefit from the Interchange revenue earned from Issuing payment products and, in return, reduce …