Acquirer is defined as what?

Acquirer is defined as what?

• A. Also referred to as 'merchant bank,' 'acquiring bank,' or 'acquiring financial institution'; processes payment card transactions for merchants
• B. Card issuer
• C. Cardholder
• D. Payment brand

Answer: (A)

In card payment systems, the acquirer is the financial institution that processes card transactions on behalf of a merchant. They provide and manage the merchant account, route transaction data through the payment networks, obtain authorization from the card issuer, and settle funds to the merchant. They’re commonly called the merchant bank or acquiring bank. The card issuer is the bank that issued the card to the cardholder and approves or declines transactions, the cardholder is the person who owns the card, and the payment brand refers to the network (like Visa or MasterCard) that facilitates the transaction between issuer and acquirer. So the best description is the merchant-facing bank that processes transactions for merchants.

In card payment systems, the acquirer is the financial institution that processes card transactions on behalf of a merchant. They provide and manage the merchant account, route transaction data through the payment networks, obtain authorization from the card issuer, and settle funds to the merchant. They’re commonly called the merchant bank or acquiring bank. The card issuer is the bank that issued the card to the cardholder and approves or declines transactions, the cardholder is the person who owns the card, and the payment brand refers to the network (like Visa or MasterCard) that facilitates the transaction between issuer and acquirer. So the best description is the merchant-facing bank that processes transactions for merchants.