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Financial Institutions and Payment Networks
Financial institutions and payment networks enable payment services to function. These
entities work together to complete the full payment cycle.
Merchant Financial Institutions (Acquirers)
A merchant financial institution, also known as an
acquirer
, offers accounts to
businesses that accept payments. Before you can accept payments, you must have a merchant
account from an acquirer. Your merchant account must be configured to process card-not-present
or mail-order/telephone-order (MOTO) transactions.If excessive chargebacks or fraudulent changes occur, these actions might be taken:
- You might be required to change your business processes to reduce the number chargebacks, fraud, or both.
- Your acquiring institution might increase your discount rate.
- Your acquiring institution might revoke your merchant account.
Contact your sales representative for information about products that can help prevent
fraud.
Customer Financial Institutions (Issuers)
A customer financial institution, also known as an
issuer
, provides payment cards to
and underwrites lines of credit for their customers. The issuer provides monthly statements
and collects payments. The issuer must follow the rules of the payment card companies to which
they belong. Payment Networks
Payment networks manage communications between acquirers and issuing banks. They also develop
industry standards, support their brands, and establish fees for acquiring institutions.
Some payment networks, such as Visa and Mastercard, are trade associations that do not issue
cards. Issuers are members of these associations, and they issue cards under license from the
association.
Other networks, such as Discover
and American Express
, issue their own cards. Before you process cards from these
companies, you must sign agreements with them.Payment Processors
Payment processors connect with acquirers. Before you can accept payments, you must
register with
a payment processor
. Your payment processor
assigns one or more merchant ID to your business.
These unique codes identify your business during payment transactions.This table lists the processors and corresponding card types that are supported for
payment services.
IMPORTANT
Only the card types explicitly listed here are
supported.
Payment Processor | Supported Card Types | Notes |
|---|---|---|
Chase Paymentech Solutions | Visa, Mastercard, American Express,
Discover, Diners Club, JCB, Carte Blanche, Maestro (International) |