Consolidated eCommerce

Whenever any transaction is initiated, it travels first through an entry point that connects the merchant’s systems to the rest of the payments ecosystem. That entry point is known – appropriately – as a payment gateway.

Small and micromerchants can be difficult and expensive for traditional merchant acquirers to reach. So, many acquirers have historically focused on marketing to and providing payment services for larger businesses.

GoDaddy announced this week that it plans to acquire payment facilitator Poynt to build out its suite of commerce and payment capabilities.

When you’re on the acceptance end of payments transactions as a merchant or a payment facilitator, you’re likely most familiar with the role of acquiring banks. But there’s another banking entity that plays a crucial role in card transactions: the issuing bank.

The difference between merchant acquirers and payment processors can sometimes be confusing. Both entities are critical partners for merchants and payment facilitators. And the terms, particularly the term acquirer, are often used interchangeably. But they are not the same thing.