Transaction Process
The Merchant Acquiring transaction process can be broken down into the following five logical steps:
Step One
The Merchant (the public sector organisation) accepts payment by card and swipes this through either a terminal rented through their Acquirer (the Bank) or, in the cases of large organizations, their own terminal software. The terminal will either dial out for an authorisation that the card is not reported lost or stolen, or work within floor limits agreed with the Acquirer.
Step Two
The card transaction will be passed to the Acquirer for processing. The Acquirer will remit the sale proceeds to the Merchant's bank account, normally within 4 working days.
Step Three
The Acquirer will request payment from the Card Issuer, normally receiving settlement within a few days.
Step Four
The Card Issuer will charge the Cardholder, either by paper invoice or to a nominated bank account.
Step Five
The Acquirer will invoice the Merchant. This fee is normally paid by Direct Debit.
