용어Acquirer, MPP

용어

Acquirer

An acquirer, also known as an acquiring bank or merchant bank, is a financial institution that processes credit or debit card payments on behalf of a merchant. When you make a purchase with your card, the acquirer handles the transaction by facilitating communication between the merchant, the card networks (like Visa or MasterCard), and the card issuer (the bank that issued your card).

Key Roles of an Acquirer:

1. Payment Processing: The acquirer processes payments by submitting the transaction details to the card networks and, ultimately, to the issuing bank.
2. Merchant Accounts: The acquirer provides merchants with a merchant account, which is necessary to accept card payments.
3. Settlement: The acquirer ensures that funds from card transactions are transferred to the merchant's account after deducting applicable fees.
4. Risk Management: Acquirers manage risks associated with card transactions, including fraud prevention and chargeback handling.

MPP (Merchant Payment Processor)

An MPP (Merchant Payment Processor) is a service provider that handles the technical aspects of processing payments between the merchant, acquirer, and issuing banks. While sometimes the acquirer itself provides payment processing services, in many cases, this role is outsourced to a third-party payment processor.

Key Functions of an MPP:

1. Transaction Routing: MPPs route transaction data between the merchant, acquirer, and card networks to facilitate approval or decline decisions.
2. Payment Gateway: They often provide the payment gateway, which is the interface used by merchants to accept online payments.
3. Security: MPPs implement security measures such as encryption, tokenization, and compliance with standards like PCI-DSS (Payment Card Industry Data Security Standard).
4. Additional Services: They may offer value-added services such as recurring billing, fraud detection, and reporting tools.

Relationship Between Acquirer and MPP

The acquirer and MPP work closely together to ensure smooth payment transactions. While the acquirer manages the financial side of the transaction, the MPP takes care of the technical details, including data transmission and security. In some cases, the acquirer and MPP might be the same entity, especially with larger financial institutions that offer both services.

Both acquirers and MPPs play crucial roles in the card payment ecosystem, ensuring that transactions are processed efficiently and securely for both merchants and consumers.