The importance of an acquirer in your payments’ setup
You started your business, it’s going well, more and more people are buying your products or using your services. But there’s a problem. Your payments setup is restricting your growth. There are payment blockages, people are abandoning their carts, and there is no one you can talk to.
We see this problem often. We call it Scale-Up Syndrome, and it happens more than you think. It is when a company becomes too big for their payment solution but not quite interesting enough for the payment’s behemoths.
So, what is a company supposed to do? You don’t have a payments specialist, and with so many solutions on the market, how do you know which one is right for you? It’s tough, and having the right setup can turn payments not into just revenue but into opportunity.
Let’s start at the beginning.
What do you need to accept payments online?
To have access to the digital economy, you will need an acquirer. An acquirer is a licensed financial institute that processes and settles payments made by customers on behalf of you, the merchant. To put it simply, the acquirer is your bank.
In order to accept card payments, an acquirer must also be licensed by a card network(s). They can either partner with a payment processor or be a payment processor itself.
Acquirers come in many different shapes and sizes. Some may also be payment service providers and give you access to local and alternative payment methods, while others may just provide credit and debit cards. Some specialize in enterprise solutions, while others work with smaller entities. Who you choose depends on what you need.
But one thing is certain. Payments cannot be processed without an acquirer.
Why work with another payment provider?
If you always need an acquirer, why would you work with another payment setup? This is where it gets complicated.
Working with money requires a lot of regulation. As there is an increased potential for fraud and money laundering. However, ensuring a company is compliant and has robust services is expensive and time consuming. This is why many companies create partnerships in order to fulfil these needs, without having to do it themselves.
For example, it is not unusual for a payment set-up to start with a referring partner, and then on to an ISO (independent sales organization), who is connected to an acquirer. In fact, we are part of many chains like this. And sometimes, this is the best solution. However, for many, such a complicated set-up is not necessary.
The best way to accept and process online payments as a scale up
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By working directly with an acquirer who can connect you to multiple payment methods, you should have everything you need to continue growing your business. Yes, you may already have this with Stripe, but by working with a smaller one that specializes in scale ups, you will get the partnership that you need and a wealth of payment experience that you can benefit from.
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As an acquirer and payment service provider, DIMOCO can act as your bank while also providing you with access to local and alternative payment methods. With a dedicated team, we design a payment set-up that will work for you. We work with many scale ups who needed to improve their payments in order to reach their potential.
