Acquirer or Acquiring Bank

An acquirer is a bank that serves merchants. It is licensed to provide merchant accounts to qualified businesses, enabling these businesses to process payment card transactions.

Examples of acquirers include:

  • FIS (Worldpay)
  • JPMorgan Chase
  • Fiserv (First Data)
  • Bank of America
  • Global Payments

What Does an Acquirer Do?

The acquirer is contracted with a processor through a merchant agreement to perform the following duties:

  • Issue merchant accounts
  • Obtain funds from the cardholder’s issuing bank and deposit them into the merchant’s account
  • Assess fees to the merchant on behalf of the processor, issuers, and card brands.
  • Monitor risk and implement revenue holds when necessary

The Difference Between an Acquiring Bank and Issuing Bank

Also referred to as:

  • Acquiring bank
  • Merchant bank

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