Acquirer banks

An acquirer bank, also known as a merchant's bank, is a financial institution that processes credit and debit card transactions on behalf of a business. When a customer pays with a card, the acquirer bank communicates with the cardholder's bank (the issuer) to authorize the payment. If approved, it deposits the funds into the merchant’s account, minus processing fees. Essentially, the acquirer bank acts as a bridge, enabling businesses to accept card payments securely and efficiently while managing the transaction flow and settlement.