Payment Industry Acquirers are Becoming Issuers
Merchant Acquirers and Card Issuers have been concentrating on their specific niches in the payment sector until recently when some players decided to change their approach. The confluence of acquiring and issuing services is aimed towards achieving affordable pricing of merchant services and serving better the increasing number of startups.
As a result, acquirers are now selling payment hardware and services that you could previously find only through issuers. This is a chance to unlock more revenue streams and trigger the advancement of merchant service to boost their bottom line.
Why Acquirers are Issuing
Interchange is the main reason acquirers are making quick steps towards issuing. And though it may mean a cost to Acquirers, Interchange remains a revenue stream for Issuers. No wonder Acquirers are now eyeing the Interchange revenue created from Issuing products to earn more income and cut the cost of acceptance for merchants.
In the past, acquirers have focused exclusively on merchant selling activities while in essence merchants need to focus on watching their cash flow, cutting cost, and getting the funding they need to grow.
Aliaswire is one such acquirer who is actively selling card issuing hardware for merchants. The firm is offering all the core merchant’s needs and making payments more convenient by accepting ISO’s and Acquirers that offer both AR/AP business processes.
Previously, payment providers like Square, PayPal, and others have been issuing Debit cards to merchants and making Interchange revenue every time the merchant swipes the Debit card. But Debi cards have denied merchants’ sufficient purchasing power, hindered them from establishing credit history and provided no dependable credit line. That’s why many ISOs/Acquirers are tapping into the funding from business credit cards issued by Aliaswire and its partners.
Aliaswire cuts a share of the interchange generated revenue to the ISO/Acquirer any time a merchant uses the card. With this revenue, ISOs and Acquirers can reduce merchant processing fees. This line of attack may lead to significant savings through the reduction of merchant processing fees.
All businesses—at some point— need financing for supplies, software, inventory or meals. Acquirers should make the most this opportunity by issuing their merchants a credit card to help them take care of pressing business expenses. In a nutshell, giving merchants an integrated AR/AP solution leads to stronger and better business rapports and boosts ISO/Acquirer revenues.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high-risk payment processing company eMerchantBroker. He’s just as passionate about assisting merchants with high risk credit card processing as he is with traveling and spending time with his dog Cooper.