Slide 5 of 8
- When a Member provides services to a merchant which enables the merchant to accept Visa cards for sales, the Member is referred to as an Acquirer.
- Visa Acquirers enter into a contractual relationship with Merchants using a merchant agreemnt that defines terms and conditions of the merchant account such as those relating to fees, and also sets forth the requirements for merchant acceptance of Visa cards.
- Acquirers are responsible for the merchant account and and performs functions such as providing authorization services, processing slaesdrafts or their electronic equivalent to Visa, providing payment of sales drafts and providing merchant service.
- Acquirers receive income in two ways: merchants pay fees to acquirers as specified in the merchant agreemnt (such as authorization terminal fees) and also through the percentage of sales the merchant generates, which is commonly known as merchant discount.