What is Acquirer or Acquiring Bank | Solidgate

Acquirer or Acquiring Bank


Acquirer, also known as an Acquiring Bank or merchant bank, plays an important role in the payment processing ecosystem by facilitating merchants’ ability to accept electronic payments. The acquiring bank processes credit or debit card payments on behalf of merchants by securely routing the card payment data onto the relevant card scheme for authorization by the issuer.

When a customer makes a purchase using a credit or debit card, the acquiring bank is responsible for initiating the transaction process.  Once the transaction is approved, the acquiring bank ensures that funds are transferred from the customer’s account to the merchant’s account.

Acquiring banks provide merchants with the necessary tools, such as point-of-sale terminals or payment gateways, to accept and process card payments. Moreover, acquiring banks take on the risk associated with potential chargebacks and payment disputes. The relationship between merchants and acquiring banks is vital for smooth and secure electronic payment processing, enabling financial transactions to flow in the modern digital economy.


Recommended articles:

Acquiring Bank: How It Works and How to Choose One


Start accepting payments today

Let’s discuss your business needs and we'll give you better fees and conversion rates than you have with your current payment provider.

    By clicking "Get in touch" you agree to our Privacy Policy

    Thank you

    Thank you

    We will contact you shortly. If you have any further questions, please contact us at sales@solidgate.com