Cr. Ignacio Algorta – Consulting Manager
Context
Since last September 1st, businesses and service providers have the possibility of having all the payment options of
debit, credit and electronic money cards through a single provider. This means that businesses that accept electronic means of payment will be able to collect their sales with cards of all brands, being able to choose the acquiring entity with whom to contract.
To better understand this topic, it is convenient to review the definitions of Seal and Acquirer according to BCU regulations.
The Seal is the entity that offers the organization, marketing structure, operational and security standards for the operation of the
net. Likewise, it grants the license to use the brand and logos for the Issuers, Purchasers and Suppliers of goods or services.
Basically it refers to the services provided by MasterCard, Visa, American Express, OCA, ANDA, among others.
On the other hand, the Acquirers are the entities authorized to offer merchants and service providers the mechanism to process debit, credit and electronic money cards as a means of payment. They are in charge of affiliating businesses and service providers to the Seal network and making the corresponding payments. Specifically, the Acquiring companies are the figure that mediates between the consumers who have the cards and the businesses that accept those cards as a means of payment. There are currently five companies registered as Buyers in BCU.
The acquisition process can be summarized as follows. When a consumer makes a purchase at a store and pays with a
means of electronic payment, POS terminals are used, among other options. From there, the acquisition process begins. the POS
captures the client’s data and sends it to the Purchaser, who requests payment authorization from the card issuer (banks, issuing institutions
of electronic money or credit card administrators). Upon receiving the payment authorization from the issuer, the Purchaser manages the
transfer of the payment to the merchant, thus completing the process.
Multiacquisition
Until now, there were Acquirers dedicated to providing businesses with access to the payment system through a Seal or brand in the form
exclusive. For example, a merchant that wanted to accept a particular debit or credit card only had a single provider available
(Acquirer) with whom to contract the service.
Therefore, if that merchant intended to offer its customers a greater variety of electronic payment methods, it had to contract with each of the exclusive Acquirers, without the possibility of choosing between different alternatives.
Now with multiacquisition, Acquirers will be able to offer access to the different means of payment for all Card Seals
Authorized and businesses will have the possibility of accepting payments with all available means (debit, credit or money cards).
electronic). With this, each Acquirer will be able to offer merchants all available electronic payment methods.
From the point of view of the Acquiring companies, an increase in competition is to be expected, since everyone will be able to offer
merchants the same means of payment of the different Seals. They will not only compete in price, but also in quality, improving
services currently available or developing new ones.
As a result of the above, the BCU recommends businesses to evaluate the new conditions of the offers available in the market of
acquisition.
On the other hand, the POS managing entities must make the necessary adjustments to their equipment in order to direct the payment transactions received to the Acquirer chosen by the merchant.
Final comments
Electronic payments continue to grow in quantity and amount and it seems clear that digital means of payment are going to have more and more
relevance.
The BCU considers that multiacquisition constitutes an improvement in the services offered by the financial system and that more merchants
they will have access to the means of payment when cost efficiency is achieved.
In turn, multiacquisition directly benefits businesses and service providers, who will start to interact with a
sole provider. This clearly simplifies the processing of electronic payments.
The question remains whether this cost benefit for businesses will be shared with consumers, although the latter will have more payment and financing options.
