Card Acquirer vs. Payment Processor: What’s the Difference?

At first glance, credit card acquirers and payment processors might seem synonymous, but they play distinct roles in the payment ecosystem. A payment processor facilitates the transaction, ensuring that details from the cardholder get transferred to the merchant and the issuing bank. A card acquirer is a financial institution that maintains the merchant’s bank account. They receive the funds from the issuing bank and deposit them into the merchant’s account.

So, why is working with a local card acquirer beneficial? Local acquirers have a deep understanding of the regional market, regulations, and consumer behavior. This expertise translates to tailored solutions, competitive rates, and higher transaction approvals.

Why Use a Local Card Acquirer? 

Most payment processors allow credit card transactions. But a local card acquirer usually has a better understanding of specific business needs, consumer behaviors and fraud risks. This expertise translates into lower fees and higher acceptance rates for merchants. If you do business internationally, then having a local payments provider that also supports international card acquiring helps streamline global expansion.

What is Local Acquiring?

Local acquiring refers to the process where businesses use a local acquiring bank or financial institution to process their card transactions. This is in contrast to using a foreign bank or a global payment processor that might not have a strong presence in the target market.

Get Your Report

The 2023 State of B2B Cross-Border Payments

Uncover the B2B payments landscape and learn why business leaders are turning to fintech to deliver cross-border growth despite economic uncertainty.

Download Report
State of Cross-Border Payments Cover

Benefits of Working with a Local Card Acquirer:

Higher Approval Rates: Local acquiring can significantly increase the number of successful transactions. This is because local banks are more familiar with the spending habits and patterns of their customers. They are better equipped to assess transactions, reducing the chances of declines.

Reduced Costs: Transactions processed through local acquirers often come with lower fees. This is because cross-border transaction fees and currency conversion charges can be avoided. Over time, these savings can add up and have a positive impact on a business’s profitability.

Better Customer Experience: Using a local acquirer can lead to faster transaction processing times. Moreover, customers are more likely to trust and recognize a local payment gateway, leading to increased confidence and potentially higher sales.

Reduced Risk of Transaction Denials: Transactions that are processed internationally are at a higher risk of being denied by banks due to concerns about fraud or other security issues. 

Compliance and Regulation: Local acquirers are well-versed in the regulations and compliance requirements of their region. This ensures that all transactions are compliant with local laws, reducing the risk of legal complications.

Unlocking Global Growth: The Advantages of Local Acquiring in Payment Strategies

Adding local acquiring into your business’s payment strategy can offer numerous benefits, from increased approval rates to cost savings. It not only enhances the customer experience but also ensures that transactions are secure and compliant with local regulations. As businesses continue to expand globally, working with a local card acquirer can provide a competitive edge and drive growth.

Looking for a Local Card Acquirer? Talk to Rapyd

  • High acceptance rates 
  • Fast onboarding
  • 99.99% uptime

Get more from card acquiring.

Learn More
A Man Plays A Game On 3 Screens, Represents Payments Are Broken For The Online Gaming's How To Fix Them.
A Mother And Two Children Having Fun While Shopping Online, Representing Securing Tomorrow's Market: The Critical Role Of Trust In Online Retail
A Woman Works On The Computer And Smiles, Representing The Digital Checkout: How To Accept Credit Card Payments Online

Subscribe Via Email

Thank You!

You’ve Been Subscribed.

More Payments
In More Places
Get one platform for all the ways the world pays.