Merchant Acquiring Business: FAQs
What is Merchant Acquiring Business (MAB)?
MAB is primarily referred to as the mechanism of providing necessary Infrastructure and facilitating payment for goods and services purchased through medium of a card.
Who are various stakeholders in MAB ?
- Issuer: The Bank that issues cards.
- Cardholder: Customer / Non customer using card for making payment.
- Merchant: Entity which accepts payments through cards.
- Acquirer: The Bank that provides necessary infrastructure to the
- Merchant to accept payment, maintains relationship and facilitate acceptance payments thru cards.
- Intermediary Agency: Visa or MasterCard who facilitate interbank settlements.
What are the important terms used in MAB?
- Merchant Discount Rate (MDR): The commission charged by the acquirer (INDUSIND) to the Merchant (Trader/Service Provider). It is also termed as Merchant Service Fee (MSF).
- Interchange: The incentive paid by the Acquirer Bank to the Card Issuer Bank for promoting payment through cards.
- Scheme Fee: The service fee paid to intermediary agencies i.e.
- MasterCard or Visa for facilitating interbank payments.
- On -Us Transaction: Where issuer and acquirer is same (e.g. INDUSIND Debit Card on INDUSIND POS terminal)
- Off-Us Transaction: Where issuer and acquirer are different (e.g. Other bank’s debit/credit card on our POS terminals.)
How MAB is beneficial to Cardholder and Merchant?
- Need not carry cash, which is risky.
- Saves time and money in visiting bank branch / ATM to withdraw money and spend the same at merchant outlet, who has to again deposit the same in Bank.
- The time saved results in lower cost and higher productivity as time saved can be gainfully utilised.
- Cash handling is avoided.
- Efficient transaction processing
- The customers have tendency to higher purchases/impulsive buying while using the card than cash, thus more sales and higher profits.
- The customer stickiness to merchant increases due to the facility.
- Better record keeping of sale and inventory
- The facility can also have provision for customer loyalty points which are widely used to attract the customer to the outlet repeatedly.
How many types of POS terminals are issued by INDUSIND?
- Portable GPRS.
- Digital POS.
- Bharat QR
What are the pre-requisites for signing the Merchant?
- KYC Compliance. Merchant needs to provide necessary documents regarding the proof of business, address proof, photo identity proof of the proprietor/partner/key promoters etc.
- Availability of Connectivity PSTN with STD at Merchant Location (Cost to be borne by the Merchant). If land line is not available, GPRS either desktop or portable as per the customers’ choice.
- Opening/identification of account for settlement of transactions with INDUSIND.
- Offer letter Acceptance of Merchant Discount Rate (MDR) by the Merchant offered by Bank.
- Merchants’ consent for execution of Merchant Establishment
- Agreement between Bank and Merchant. POS terminal shall be installed only after the execution of ME agreement.
Where and how a merchant can apply for installation of POS terminal at his shop/establishment?
Merchant can contact the IndusInd Branch or LACR Business Team
Whether merchant has to pay for POS terminal?
No, merchant is not required to pay anything towards cost of terminal. POS terminal is installed at absolutely free of cost. The cost for procurement of terminal and also the maintenance of terminal is borne by the Bank.
What are the Do’s and Don’ts for merchants?
- Merchants must accept all cards when properly presented as payments for transactions.
- Bring to the notice of the bank any fraudulent activities.
- In case of any problems with the machine, call the helpline number or write @ possupport@IndusInd.com
- Perform settlement on POS terminal at-least once in a day; settlement may be done by merchant as many times as he wish. If not done amount shall not be credited in customer’s settlement Account.
- Merchant must not disclose details of the card or cardholders to any third party.
- Impose any extra charge or surcharge (unless expressly allowed by local law).
- Indulge in any fraudulent activity.
Why a Merchant should opt for INDUSIND POS machine
- No hidden costs.
- INDUSIND network is present across all geographies.
- Loan against Credit Card receivables
- Merchant has access to transactions done on his / her terminal(s) after logging in the application.
- Customized MIS at weekly/fortnightly/monthly intervals are made available.
- Merchant will have access to other products of INDUSIND.
Which value added services are being offered on INDUSIND POS Terminals?
Dynamic Currency Conversion, NFC(Tap N Pay),EMI