How do you manage the relationship and expectations of your merchants, issuers, and payment networks?

1 Understand your merchants

Your merchants are your customers, and you need to provide them with the best possible service and value. This means understanding their needs, preferences, and pain points, and offering them solutions that suit their business models and goals. You also need to communicate with them regularly, provide them with clear and transparent information, and respond to their inquiries and feedback. By building trust and loyalty with your merchants, you can increase retention, referrals, and revenues.

2 Negotiate with issuers

Issuers are the banks or financial institutions that issue cards to consumers and authorize transactions. As an acquirer, you need to negotiate with issuers to secure favorable interchange rates, which are the fees that you pay to them for each transaction. You also need to comply with their rules and regulations, and resolve any disputes or chargebacks that may arise. To negotiate effectively with issuers, you need to have a solid understanding of the market conditions, the competitive landscape, and the value proposition of your merchants.

3 Collaborate with payment networks

Payment networks are the entities that facilitate the transfer of funds and data between issuers and acquirers, such as Visa, Mastercard, and American Express. As an acquirer, you need to collaborate with payment networks to access their platforms and services, and to comply with their standards and requirements. You also need to keep up with their innovations and trends, and leverage their tools and resources to enhance your offerings and capabilities. By collaborating with payment networks, you can improve your operational efficiency, security, and customer satisfaction.

4 Manage your risks

Merchant acquiring is a risky business, as you are exposed to various types of threats, such as fraud, data breaches, non-compliance, and reputational damage. As an acquirer, you need to manage your risks effectively, by implementing robust policies and procedures, using advanced technologies and systems, and conducting regular audits and reviews. You also need to monitor your merchants' performance and behavior, and take corrective actions if necessary. By managing your risks, you can protect your assets, reputation, and profitability.

5 Optimize your costs

Merchant acquiring is a competitive and low-margin business, as you need to balance the costs of acquiring and servicing merchants, paying interchange fees, and investing in technology and infrastructure. As an acquirer, you need to optimize your costs, by finding ways to reduce expenses, increase revenues, and improve productivity. You also need to analyze your data and metrics, and identify areas of improvement and opportunity. By optimizing your costs, you can enhance your profitability and sustainability.

6 Innovate your solutions

Merchant acquiring is an evolving and dynamic business, as you need to adapt to the changing needs and expectations of your merchants, issuers, and payment networks. As an acquirer, you need to innovate your solutions, by developing new products and services, integrating new features and functionalities, and adopting new technologies and trends. You also need to differentiate yourself from your competitors, and create value for your stakeholders. By innovating your solutions, you can grow your market share and customer base.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?