Acquirer

An acquirer, or acquiring bank, is the bank that holds a merchant's account and accepts card payments for that merchant. When a customer pays, the acquirer receives the funds through the card network, takes its fees, and pays the rest to the merchant. The issuer is the customer's bank on the other side of the same payment.

What the acquirer does

• Sends the merchant's authorization request to the card network, which passes it to the issuer.
• Collects the funds during settlement and credits the merchant account.
• Approves merchants, watches their chargeback rates, and can hold reserves to cover fraud or refunds.

Processors like Stripe include the acquiring relationship in their service. Most Stripe merchants never deal with an acquiring bank directly.

Acquirer vs issuer

• The issuer is the customer's bank. It issued the card and collects the money from the cardholder.
• The acquirer is the merchant's bank. It accepts the payment and pays the merchant.

Why it matters

The acquirer decides when and how a merchant gets paid. Its settlement schedule sets your payout timing, and its risk rules can trigger holds or reserves that delay funds. A merchant of record can take on this relationship and sell on the merchant's behalf.