BANKING AFFAIRS

Detailed explanation-1: -An acquiring bank, also known as an acquirer or merchant bank, is a financial institution/bank that processes card payments on behalf of merchants. In other words, it acts as a middleman in card transactions and allows merchants to accept card payments from the issuing banks within an association.

Detailed explanation-2: -A merchant acquirer is a financial institution that processes credit and debit card transactions for a company or merchant. A merchant acquirer may also be referred to as an acquiring bank.

Detailed explanation-3: -An acquiring bank (sometimes referred to as “acquirer” or “credit card bank”) is an institution that has the Cards Schemes authorization to process a transaction so by signing a contract with the acquirer, a merchant can process credit and debit card transactions.

Detailed explanation-4: -What is the difference between the two? The terms acquiring and issuing refer not to specific banks, but to where those banks are in the transaction flow. Put simply, the acquiring bank is the bank on the merchant end of the transaction, and the issuing bank is the cardholder or consumer’s bank.

Detailed explanation-5: -The issuing bank or entity is a financial institution that issues and services debit and credit cards. Issuing banks are members of international payment networks and act as guarantors of the fulfillment of financial obligations that arise in the process of using a credit card.