Acquiring industry's annual checkup
The sixth annual Mercator Advisory Group report on U.S. merchant acquiring offers an in depth analysis and discussion of market performance by the nation's leading acquirers, the issues surrounding counterparty risk and indicators that suggest dramatic changes for acquirers at every level, whether merchant, processor or bank.
"The U.S. merchant acquiring market, while concentrated heavily in the top tier of players, is actually quite diverse when it comes to the opportunities for firms of various kinds to share in the overall industry," said David Fish, Senior Analyst for Mercator's Credit Advisory Service and the report's author.
According to Fish, the traditional view of acquirers as bank members of card networks that own or sponsor processing of card transactions via those networks, and thus hold the risk associated with those transactions, is changing. The paper explores the liability chain linking entities in the acquiring network and the potential risk to each party involved.
"In reality, the acquiring bank passes liability for merchant card transactions downstream to partner intermediaries and is only one of four types of entities that could potentially own merchant contracts and risk liability that those contracts will go bad," Fish said. New to this year's report is a market share analysis and market division by acquirers, processors and banks.
Report highlights include:
Market share analysis for the U.S. merchant acquiring industry
Discussion of counterparty risk in merchant acquiring
Analysis of new card network processing fees
Review of key issues, from regulation to data security
For more information about this report, please visit