What is a Merchant Acquirer?

In the payments processing world, the term acquirer can be confusing. Even though it refers to a specific function in the payments processing chain, it is often used more broadly as well, as key players often take on multiple roles.

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What Makes PFs and Marketplaces Different?

The Merchant Acquirers’ Committee (MAC) is hosting a webinar that takes a deep dive into the payment facilitator model versus the traditional marketplace classification. Specifically, they strive to outline the major differences between payment facilitators and marketplaces: What makes them different and why?

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Take A Deep Breath PFs, Beneficial Ownership Rule Is Not So Bad

First things first: In our opinion, the Treasury’s May 11 FinCEN rules are going to impact ISOs and Payment Facilitators alike, in that banks are going to make them follow these new rules.

Although the rule does not speak to ISOs or PFs underwriting merchants or submerchants, we fully believe if you are required to do KYC now — and ISOs and PFs are required to do KYC now — they will be required to do the increased KYC under the new rules.

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State Money Transmitter Rule Slams PFs, ISOs

Late last month, Pennsylvania issued an advisory that its money transmitter regulations are violated when payments companies–payment facilitators and ISOs–collect money from consumers and forward it to nonprofits and religious organizations. And yes, this advisory is as crazy as it sounds.

Whether or not other states follow the Keystone State’s lead, this decision will have devastating consequences for emerging payment companies, especially those who do not have the resources of traditional old line processors. Many may well be faced with the prospect of either banning Pennsylvania consumers or leaving the nonprofit and religious processing space.

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