Credit Cards

Acquiring financial institution

An acquiring financial institution, or acquirer, is a bank that processes and settles a merchant’s daily credit card transactions, and then in turn settles those transactions with the card issuer/association. Merchants must maintain such an account to receive credit for credit card transactions. Daily card transaction totals are deposited in the merchant’s account after settlement and discount fees are deducted. In this way, such a financial institution acquires, or serves as the intermediary, to facilitate the credit transaction and pays the merchant, less a discount fee for the service.