Acquiring banks play a crucial role in processing credit card transactions and ensuring merchants receive payments from customers. To ensure a fruitful partnership, it’s essential for merchants to understand what keeps acquiring banks happy and, equally important, what not to do.

1. Be Transparent

Transparency is the foundation of any successful partnership. Acquiring banks appreciate honesty and clear communication. Merchants should provide accurate information about their business, including the nature of their products or services, processing volumes, and any potential risks. Concealing information or being vague can erode trust and lead to complications down the line.

2. Maintain Compliance

Adhering to rules and regulations is not just good practice; it’s a legal requirement. Acquiring banks are bound by strict compliance standards, and they expect the same from their merchant partners. Failure to comply with regulations related to data security (such as PCI DSS), fraud prevention, and chargeback management can result in fines, penalties, or even the termination of the merchant account.

3. Minimise Chargebacks

High chargeback rates can be a red flag for acquiring banks. Chargebacks can indicate customer dissatisfaction, fraud, or disputes that have escalated to the point where the bank needs to step in. To keep acquiring banks happy, merchants should implement effective fraud prevention measures, maintain clear return and refund policies, and resolve customer issues promptly to prevent chargebacks whenever possible.

4. Maintain Financial Stability

Acquiring banks assess a merchant’s financial stability to gauge their ability to fulfil chargebacks and refunds. Merchants should ensure they have sufficient funds in their accounts to cover these contingencies. A lack of funds can lead to account freezes or termination, causing disruptions to the business.

5. Manage Risk Wisely

Acquiring banks understand that every business carries some level of risk. However, they expect merchants to manage and mitigate these risks responsibly. Merchants should implement robust anti-fraud measures, monitor transactions for unusual activity, and stay up to date with emerging threats in the e-commerce landscape.

6. Communicate Changes

Merchants should inform acquiring banks of any significant changes in their business, such as new product lines, markets, or changes in transaction volumes. These changes can impact risk assessments and processing requirements, so clear communication helps maintain a harmonious partnership.

What Not to Do:

• Ignoring Customer Feedback: Disregarding customer complaints and feedback can lead to escalating issues and chargebacks. Listen to your customers and address their concerns promptly.
• Processing Prohibited Transactions: Engaging in prohibited activities, such as selling illegal or high-risk products, can lead to account termination and legal consequences.
• Neglecting Security: Failing to secure customer data or payment information can lead to data breaches and regulatory fines.
• Disregarding Chargeback Notifications: Ignoring chargeback notifications or not responding within the stipulated timeframes can harm your relationship with acquiring banks.

In conclusion, merchants can maintain happy acquiring banks by building trust through transparency, adhering to regulations, minimising chargebacks, staying financially stable, and managing risks effectively. By avoiding common pitfalls and taking proactive measures, merchants can foster strong and lasting partnerships with acquiring banks, ensuring the smooth processing of online payments.