A merchant acquirer, also known as an acquiring bank, credit card acquirer, or acquirer, is a financial institution that enables a merchant to accept credit and debit card payments. The merchant acquirer is responsible for establishing and maintaining merchant accounts, which allow businesses to accept card payments. They also facilitate the authorization and settlement of transactions with issuing banks and assume the risk of chargebacks, fraud, and disputes. The merchant acquirer helps merchants with all card and transaction-related matters, including processing payments, authenticating the customer, card authorization, receiving the money from the card-issuing bank, and paying all of the scheme fees for the merchant.

The merchant acquirer is one of several players involved in carrying out a credit card transaction. The customer provides their credit card information to the merchant via a card terminal, the merchant’s website, or over the phone. The payment processor handles the authorization and secure transfer of transaction data, while the acquirer manages the merchant account and deposits the funds. The acquirer communicates with card networks and issuing banks to authorize and settle transactions.

In some cases, one entity can provide both functions for merchant customers. Payment processors often provide merchants with access to deposit accounts through their own relationships with acquiring banks. And acquiring banks, particularly the larger ones, sometimes offer payment processing services to their merchant clients. Companies that offer both services are often referred to as merchant acquirers, and they eliminate the need for a merchant to identify a provider for each service.