Acquiring Bank/ Acquiring Payment Institution (Acquirer)

Is the Entity (Bank or Payment Institution) which is a member of the Card Network Accepting/ Acquiring Transactions on behalf of a Merchant

How does Acquirer work?

Whenever Customer tries to execute a Transaction, Acquirer will either accept or decline it, based on the information, which is held by the Issuer and a Card Network. It will check the Account Balance and if there are sufficient funds will complete Transaction. Aside from completing all Transactions, Acquirer assumes full risk and responsibility associated with the Transaction i.e. if it authorises the Transaction for which there were insufficient funds it becomes liable for such wrongly executed Transaction. In order to safeguard itself, Acquirer charges various fees on top of those, which are charged by the Card Network and the Issuer.


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