Also called a merchant acquirer or payment acquirer, the acquirer sits on the merchant's side of every card payment. When a customer pays, the acquirer sends the transaction through the card network to the customer's bank for approval, then deposits the settled funds into the merchant's account.
Acquirer vs. issuer: the issuer is the customer's bank, the one that issued their card and approves or declines each purchase. The acquirer is the merchant's bank. The card network (such as Visa or Mastercard) connects the two. In a chargeback the flow runs in reverse: the issuer raises the dispute and the acquirer passes it to the merchant.
Merchants rarely interact with the acquirer directly; a payments provider manages that relationship on their behalf. What matters to a merchant is that the underlying banking relationship is stable and suited to their category.
Common questions
- What is the difference between an acquirer and an issuer?
- The issuer is the cardholder's bank, which issues the card and approves or declines purchases. The acquirer is the merchant's bank, which accepts card payments for the business and deposits the funds. The card network connects them.
- Is an acquirer the same as a payment processor?
- Not always. The acquirer is the bank that holds the merchant account and carries the risk. A payment processor handles the technical movement of transaction data. Some companies do both, and many merchants deal only with a provider that manages both relationships for them.
- Why does the acquirer care about chargebacks?
- If a merchant cannot cover its chargebacks or refunds, the acquirer is responsible for the money. That is why acquirers underwrite merchants before approval and watch chargeback levels afterward.