Definition of Acquirer

It is a financial organization working as a bridge between the Banks/Financial Companies and the customers/consumers using credit  or debit cards.

In the recent times when everything has been modernized,   merchants or shopping malls/stores have been forced to keep Debit/Credit Card business affiliations just to add other methods of payment along with cash payments.

Brief Explanation of Acquirer

It is a financial organization working as a bridge between the Banks/Financial Companies and the customers/consumers using credit  or debit cards.   During the process of purchasing,  they are the main channel to Authorize any purchase transaction.  After their approval,  any Debit or Credit Card is authorized for further processing.    They are also named as Merchant Service Providers.   It establishes a contractual relationship with the merchant and assigns the relevant fees/discount rates for the merchant and ensures the merchant complies with all regulations stipulated in the card schemes.

There is a certain agreed percentage of deduction on the transaction amount as their fees which is called transaction fees.  They  are required to get authorized license from Credit Card Companies such as Visa or Master Card.  On every use of Credit/Debit Card consumer also use the services of Acquirer thus adding business for the Acquirer.