Indian Overseas Bank has announced its foray into the merchant acquisition business in association with the Australia based Banktech.
Under this, IOB will give card swipe devices to merchant establishments so that its machines would be used to swipe credit and debit cards of the customers. When a shopper’s credit card is swiped on an IOB machine, the bank gets a commission. If the credit card is also the one issued by IOB, the commission would be more.
As per the deal, 67% of the commission earned would go to the Australian company as it supplies the machines and maintains the technology platform.