An acquiring bank, otherwise called an acquirer, is a bank, budgetary establishment or corporation that accepts credit or debit card payments on behalf of a merchant. Some of the biggest international acquiring banks include Visa, MasterCard, American Express and Diners Club.

Features of an acquiring bank

When setting up a merchant account it is of fundamental importance to establish a positive relationship with an acquiring bank, as they assume a noteworthy role in the overall process of setting up the merchant account. Their role is likewise of great importance once the merchant account is completely operational.

Once you have established a relationship with an acquiring bank it is their responsibility to process your organization’s transactions and transfer the deposits into a bank account when a credit card payment is processed. Acquiring banks are normally licensed members of a card affiliation, and likewise, have relations with the merchant’s personal or business bank.

An acquiring bank keeps up a direct relationship with the merchant and as a rule has stringent rules and criteria in place consistently. When establishing a newly formed business, acquiring banks tend to have stricter rules and extra requirements in place, as they accept the risk of the merchant’s business. Companies must continually adhere to those rules at all times otherwise they risk losing their relations with the acquiring bank.

In a simple credit card transaction workflow, the acquirer serves as the connection between the merchant, the card affiliation and the issuing cardholder’s bank. The acquiring bank ultimately selected will depend upon the area, rates and the type of merchant account that you require.

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