Compliance obligations connected to a Swiss acquiring license

Abstract

While the Swiss intermediary sells and onboards terminals independently, it does not have its own acquiring license. It therefore only acts as an acquiring "sales agent" on behalf of its German parent company. This setup creates several disadvantages compared to local Swiss competitors, because BaFin is imposing a very strict legal framework on acquirers, such as the necessity of adhering to AML laws. This is not the case in Switzerland: Acquirers in this country are exempt of the AML-duties. The different kind of license leads to worse sales conversion rates and longer onboarding times.