Pathward Financial Investor Presentation Deck
DEFINITIONS, CONTINUED
Payment Players
Acquiring Bank:
An acquiring bank provides merchant accounts that allow a
business to accept card payments and works in conjunction with
the acquirer processor. In some cases the acquiring bank and
acquirer processor are a single entity.
Acquiring Processors:
Acquirer processors connect directly with merchants, the network
and the acquiring bank, or via a payment gateway, to facilitate
payment acceptance at the merchant. They provide the technical
capabilities to create the system of record to communicate with
authorization and settlement entities. In some cases the acquiring
bank and acquirer processor are a single entity.
Issuing Bank:
The issuing bank enters into a relationship with the cardholder,
program manager, and enables cards on a given network. The
issuing bank fills three primary roles in payment processing: it is a
"network sponsor," which means it can issue cards on a given
payments network; it is a holder of funds (for example, for gift
cards, deposit accounts and other non-credit cards); and it is a
"settlement point," managing a consumer's account and paying
out to the merchant's account after a purchase.
Meta Financial Group, Inc. (NASDAQ: CASH) | Investor Presentation
Issuing Processor:
Connects directly with the networks and issuing bank to provide
the system of record, authorize transactions and communicate
with settlement entities.
Fintech:
Fintech refers to the integration of technology into offerings by
financial services companies in order to improve their use and
delivery to consumers.
Merchant:
A merchant simply refers to any business that accepts card-based
payments either via a physical swipe (at the point-of-sale) or
virtually online.
Program Manager:
Businesses that manage various elements of a card program on
behalf of the issuing bank. The Program Manager is responsible for
defining the program, operating the program, and managing its
profitability. The program manager typically is responsible for
establishing relationships with processors, banks, payment
networks and distributors and for establishing account(s) at banks.
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