Redemption agreement
A merchant agreement is an agreement with a bank or payment processor that entitles you to accept card payments in your online store. Without a merchant agreement, you cannot have the funds from a customer’s card transaction transferred to your bank account.
What is an acquiring agreement?
When a customer pays with Visa or Mastercard in your online store, the funds must be transferred from the customer’s bank to yours. The acquirer handles this transfer. An acquiring agreement is your contract with the acquirer, which grants you the right to accept card payments and receive the funds.
The acquiring agreement is separate from the payment gateway. The gateway handles the technical aspects of the transaction (card validation, 3D Secure, etc.), while the acquirer handles the financial side (funds transfer).
The Three Components of Online Payments
To accept card payments online, you need three things in place:
- Payment gateway: Software that handles the technical aspects of the transaction (e.g., Stripe, QuickPay, OnPay)
- Acquirer agreement: An agreement with a bank that authorizes and transfers funds
- Online store: Your store that initiates the payment (e.g., Shoporama)
Some modern solutions, such as Stripe and OnPay, combine the gateway and acquiring services into a single package, so you don’t need separate agreements.
How much does an acquiring agreement cost?
The acquiring fee is the primary cost and typically consists of:
- Percentage fee: Typically 1–2% of the transaction amount. Varies depending on card type (Visa/Mastercard, debit/credit, domestic/international).
- Minimum fee: Some acquirers charge a monthly minimum fee that must be paid regardless of sales volume.
- Setup fee: Certain acquirers charge a one-time fee upon account setup.
- Monthly fee: A fixed amount to keep the agreement active.
In addition, there is a difference in fees between Danish Dankort transactions (usually lower) and international card transactions (typically higher).
Popular acquirers in Denmark
- Nets (Dankort): Mandatory for Dankort processing in Denmark. Almost all Danish online stores have a Nets agreement.
- Clearhaus: A Danish acquirer specializing in e-commerce with transparent pricing and quick setup.
- Stripe: Integrated gateway and acquirer with simple percentage-based pricing.
- Worldline (Bambora): A major international payment processor with a presence in Denmark.
- OnPay: A Danish solution with an integrated gateway and payment processing.
Dankort Processing
Dankort is the most widely used payment card in Denmark, and as a Danish online store, you should almost always offer Dankort payments. Dankort transactions are processed through Nets, and there are regulations in place that limit the fees for Dankort transactions. The card itself is often a Dankort/Visa co-branded card, and the customer can choose which part to use.
How to Choose a Payment Processor
- Pricing: Compare percentage-based fees, flat fees, and minimum turnover requirements. Be sure to include Dankort processing separately.
- Payout frequency: How quickly do you receive the funds? Daily, weekly, or monthly payouts vary by acquirer.
- Card types: Make sure the acquirer supports the cards your customers use (Visa, Mastercard, Dankort).
- Integration: Check that the acquirer works with your chosen payment gateway.
- Contract terms: Some acquirers have minimum contract periods—be aware of the cancellation terms.
How to Use Shoporama
Guides that demonstrate the concept in practice
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