The merchant acquiring bank and the merchant account provider work hand-in-hand and simultaneously in e-commerce, but do different things. The acquiring bank is the bank selling acceptance services to merchants and assuming financial risk in acquiring a merchant’s payment card transactions. When merchants – particularly high risk merchants and startups – pose a degree of financial risk, the acquiring bank will impose a rolling reserve to buffer the risk of offering credit card processing.
The merchant account provider (Instabill) is a third party that provides the merchant account and its functions: the connection to the payment networks, the transmission and security of data and settlement. The provider is the party actually fueling the transaction.
In a credit or debit card transaction, the merchant sends the details of the transaction to the acquiring bank, which relays the details to the consumer’s bank (commonly called the credit card issuing bank). The card issuing bank approves (or declines) the payment to the acquiring bank (while keeping a small sum called the interchange fee), and the funds are then transferred from the acquiring bank to the merchant account. The acquiring bank also keeps a small fee (called the merchant services fee).
The merchant account provider is accountable for setting up the merchant account through the acquiring bank.
There are numerous qualities that separates Instabill from other merchant account providers:
- Partnerships with acquiring banks worldwide: Europe, Asia, Australia, South America and Africa as well as offshore solutions in the Caribbean.
- We are very resourceful: If we feel you have the portfolio, we’ll find a high risk merchant account solution. Instabill prides itself on matching high risk and hard-to-place merchant with solutions.
- Solutions TMF/MATCH-listed merchants: Among our many payment processing solutions includes one through the use of gift cards, enabling anonymous payments. Find out more about this solution.
- Live support – always: By telephoning us at 1-800-530-2444, you will be directly connected with a live merchant services provider who will engage you about your needs and discuss possible solutions.