What is acquiring: types, features and opportunities for individual entrepreneurs

Using acquiring saves entrepreneurs time on processing payments. That’s why bank card payments are used today in almost all retail outlets and service locations.

To meet the demands of the modern customer, it's essential to understand how acquiring works and why it's necessary. Let’s answer the most relevant questions.

What is acquiring?

Acquiring is a banking service for accepting and transferring non-cash payments made with bank cards. This payment method is common both in physical stores and online.

The main feature of the process is that the customer’s funds are automatically and quickly credited to the entrepreneur’s bank account. This distinguishes acquiring from standard IBAN transfers, where funds are received within three business days.

How does acquiring work?

Several parties are involved in acquiring. The key participants include:

• buyer: pays for goods or services using a bank card;

• seller: receives funds via a payment terminal;

• issuing bank: issues the payment card, checks account balance, and authorizes the transaction;

• acquiring bank: provides POS terminals, supports them, processes payments, and offers technical support.

What is the difference between an acquiring bank and an issuing bank?

To accept card payments for goods or services, an entrepreneur signs a service agreement with a bank and receives special equipment — a POS terminal. The acquiring bank helps businesses accept payments and handles transaction processing.

A POS terminal is an electronic device used to process card payments from buyers to entrepreneurs. These are installed in restaurants, stores, and other retail locations. The device reads card data and processes the payment automatically, ensuring accuracy for sellers and convenience for clients.

An entrepreneur with a PrivatBank POS terminal allows customers to quickly and conveniently pay without cash. The payment process works as follows:

• the customer inserts or taps the card on the electronic device using contactless payment;

• the terminal reads the card data and sends a request to the issuing bank to check the balance;

• the issuing bank processes the request and approves or declines the payment;

• the POS terminal generates and prints the receipt.

For smooth operation, the device must have a stable internet connection. Then, any transaction is processed in seconds.

Once the customer’s card is charged, the acquiring bank transfers the funds to the seller’s account.

The issuing bank is responsible for issuing cards, verifying them, processing payments, and conducting transactions.

What types of acquiring exist?

There are various technical means to pay for goods or services by card.

What is Internet acquiring?

Internet acquiring is a way to pay for goods online. It's suitable for e-commerce where customers pay on the website using card details.

To ensure secure and successful transactions, sellers must provide the necessary conditions for online payments.

What is retail acquiring?

Retail acquiring is the most common payment method among consumers. It is widely used in retail, such as small stores or shopping centers.

Transactions are processed via a POS terminal connected to the ECR. The device can be button-based or touchscreen and supports:

• contactless: the customer taps the card or NFC-enabled smartphone to the reader module on the terminal;

• contact: the card is inserted directly into the terminal to read its data.

What is mobile acquiring?

This is a more flexible payment method using a tablet or smartphone. It’s popular for couriers, taxis, or food delivery services.

The entrepreneur installs a special app on the smartphone to scan the card data and send a request to the bank. Stable internet is required for this method.

Mobile acquiring features

Mobile acquiring can use the following technologies:

Tap to Phone

A full POS terminal in a smartphone — no extra equipment required.

The seller installs a software ECR app, and the customer taps their card on the phone. The built-in module reads the data and sends it to the bank for payment approval.

QR acquiring

The seller generates a unique QR code for each item. The buyer scans it and proceeds to payment. Google Pay or Apple Pay can also be used.

In both cases, the customer receives a digital fiscal receipt after successful payment.

How is acquiring taxed for Sole Proprietorships on the simplified tax system?

For Sole Proprietorships on the unified tax, the income is considered the amount credited to their current bank account. The date of income is the date of fund receipt, not the date the payment went through the POS terminal.

How to choose the best acquiring type for a Sole Proprietorship?

Sole Proprietorships of various tax groups are required to use acquiring for cashless payments under Resolution No. 894.

However, many entrepreneurs still hesitate whether mobile acquiring or POS terminals are better for modern business.

To make the right decision, consider the following factors:

• type of business: physical stores may use POS terminals, while transport or courier services are better suited for mobile acquiring;

• economic benefits: POS terminals print two fiscal receipts. One is kept by the seller, the other given to the customer. Meanwhile, mobile acquiring requires no equipment maintenance costs and generates digital receipts sent via Viber or email;

• commission fees: the acquiring bank charges a fee per transaction, which matters for taxation;

• technical capabilities: consider whether acquiring can be integrated with the ECR. For example, Torgsoft software ECR supports all terminal models.

Why should a Sole Proprietorship connect acquiring?

Modern business success depends on strong competitive advantages. To boost reputation and client trust, entrepreneurs must choose a reliable acquiring bank. Acquiring enables fast, secure, and convenient payment processing — driving business growth and increased revenue.

Key advantages of acquiring for Sole Proprietorships:

✅ convenient payments for customers: most buyers prefer contactless payment, so having the right equipment at checkout enhances customer experience;

✅ sales growth: when no payment limitations exist, customers shop more frequently and spend more;

✅ faster checkout and time saving: no need to calculate totals or change — the purchase process speeds up;

✅ secure cashless payments: no risk of counterfeit bills; each transaction is verified by the bank, preventing fraud;

✅ better cashier performance: staff can focus on service rather than cash handling, reducing errors;

✅ sales analytics: acquiring allows tracking sales statistics, analyzing metrics, and improving store operations. It helps understand customer behavior and preferences.

Finally, acquiring simplifies accounting, as each transaction is automatically recorded in the system — making operations more transparent and reducing errors.