Who Are Card Acquirers?

But what exactly is an acquirer, and why do you need one? The acquirer – also known as a credit card bank, acquiring bank, or merchant – is a bank or financial institution that's licensed as a member of a card association (like Visa or Mastercard), that creates and maintains the merchant's bank account.

What does a card processor do?

A processor provides a service or device that allows merchants to accept credit cards as well as send credit card payment details to the credit card network. It then forwards the payment authorization back to the acquiring bank.

What is the difference between card issuer and acquirer?

Issuers enable customers to make payments in much the same way. Acquirers authorize and process transactions but rely on issuers to validate credit cards and issue payments. ... Meanwhile, other card brands like American Express and Discover serve as both the credit card network and the issuing bank for their cardholders.