When selecting a payment processor, businesses have a variety of options to consider. Factors such as mobile optimisation, handling recurring payments, and POS capabilities can all play a role in the decision-making process. A crucial consideration within the selection process is the number of acquiring connections a payment processor has, specifically whether they are linked to a single acquirer or multiple acquirers.
When choosing to work with a payment processor that is connected with a single acquirer, or a processor who also operates as an acquirer, all of a merchant’s transactions will be routed through a single acquiring source. This strategy can come with a host of drawbacks.
In this article, we have explored how the ability to route transactions through multiple acquirers can provide more options for transaction approval, payment types and cost control helping businesses to increase sales, customer satisfaction and reduce their overall risk. We have also looked at how visibility over acquiring data can bolster a data-driven payments strategy by informing better decision making.
Cost control and efficiency
From a cost perspective, a payment processor that is connected to multiple acquirers can likely offer more control over fees. By only working with one provider for their payment processing and acquiring, merchants may not have access to the best rates, fees, and services available in the market, which can ultimately increase the costs of processing and acquiring payments. When connected to multiple acquirers, there is an opportunity for better rates and fees to be negotiated, which can result in significant savings over time.
Flexibility in payment type
Another key benefit working with a payment processor that is connected to multiple acquirers is that it can offer more flexibility in terms of the types of payments that can be accepted. Some acquirers may only accept certain types of payments, such as credit cards or debit cards, while others may accept forms of payments such as digital wallets. Using a limited number of payment types can hinder a businesses ability to tailor their payment strategy to their specific business needs. With a payments processor that is connected to multiple acquirers, businesses can accept a wider range of payment types, which can help increase sales and customer satisfaction.
Data & insights about transaction activity
While there are a number of high-profile payment processors that connect into multiple acquirers, not all of them have the capability for their merchants to see the acquiring data once a transaction is processed. Acquiring data is extremely valuable because it provides insight into customer behaviour and purchasing patterns. This information can be used to refine an acquiring strategy by identifying key demographics, understanding customer needs and preferences, and identifying trends in purchasing behaviour. By using this data, businesses can optimise their customer payment journey, pricing, and marketing strategies to better target their audience and increase sales. Additionally, acquiring data can also be used to identify potential fraud and mitigate the risk of chargebacks, which can be costly.
At Acquired.com, we provide businesses with the opportunity to review, measure and control their payments landscape by utilising acquiring data in an interactive analytics and reconciliation platform that brings together all payments activity. Providing a data-rich view of all transactions is extremely valuable as it allows businesses to make informed decisions that can ultimately lead to increased revenue and improved customer satisfaction.
Benefitting from a consultative approach to payments
Acquired.com have built a reputation for consultative excellence, working closely with each of our customers to build a payments strategy that meets their specific needs. We act as a source of reliable information and as a conduit for all acquiring relationships, helping refine and optimise payment strategies by providing expert guidance and consultative support. This can include identifying the most appropriate payment methods and processing options for the merchant’s specific business needs, as well as providing ongoing suggestions and monitoring of payment success rates.
Acquired.com’s acquiring strategy
With more options for transaction approval, payment type, acquirer data and cost control, having the option to route transactions through different acquirers can help businesses to increase sales, customer satisfaction and reduce risk. Acquired.com’s connections to multiple acquirers mean that we can route transactions through certain acquirers that have the best success rates based on certain criteria including MCC code, BIN number, card scheme, currency, acquirer risk strategy and deferred settlement/security.
It’s important for businesses to weigh the benefits and choose the payment processor that best fits their needs – we’d love to help your business connect with multiple acquirers. Speak to our team.