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What is an acquirer?

ac - quir - er
noun

An acquirer, also referred to as an "acquiring bank," plays an important role as the financial entity responsible for overseeing and processing electronic transactions on behalf of merchants.

How does acquiring work?
 

Acquiring banks hold membership within card networks, including renowned entities such as Visa, Mastercard, Discover and American Express. Their central function involves reconciling the payments with the card issuer, thereby fostering the financial linkage between cardholders and merchants.

In essence, with every card-based purchase, the acquiring bank assumes the responsibility of endorsing and settling the transaction on behalf of the merchant. This validation includes the authorization of the transaction and its subsequent settlement into the merchant's account. Acquiring banks act as intermediaries, facilitating seamless interactions between the issuing banks and the merchants who use card-based payments.