Glossary
What is an acquirer? Acquiring bank meaning in card payments
An acquirer, or acquiring bank, is the licensed bank or payment institution that contracts with a merchant to accept card payments. It sends each authorisation request through Visa or Mastercard to the shopper's card issuer, receives the funds when the payment is cleared, and settles them to the merchant's bank account minus fees, while carrying the risk if the merchant cannot cover refunds or chargebacks.
- Acquirer
- A bank or licensed payment institution that is a member of a card scheme and holds the merchant relationship: it accepts card transactions on the merchant's behalf, settles the funds to the merchant and is liable to the scheme for the merchant's transactions.
At a glance
| Licence in the EU | Credit institution, payment institution or e-money institution; acquiring is payment service no. 5 in Annex I of PSD2 |
|---|---|
| Settlement to the merchant | Typically 1 to 3 business days after capture |
| Acquirer margin on interchange++ | Set by contract with the acquirer |
| Acquirer reference number (ARN) | A 23-digit number the acquirer assigns to trace a transaction or refund |
What is an acquirer in payments?
The acquirer is the merchant's side of the card network. It is a principal member of Visa and Mastercard, underwrites the merchant before signing, and answers to the schemes for every transaction the merchant submits. In the EU, acquiring of payment transactions is a regulated payment service under PSD2, so acquirers are banks, payment institutions or e-money institutions.
What does the acquirer do in a card payment?
The acquirer appears at each step of a card payment, usually behind a gateway or PSP that the merchant integrates with.
- Authorisation The acquirer forwards the request through the card scheme to the issuer and returns the approval or decline.
- Clearing Captured transactions are submitted to the scheme in batches, and the issuer pays the amount minus interchange.
- Settlement The acquirer pays the merchant, net of fees and any reserve, typically one to three business days later.
- Disputes Chargebacks arrive from the issuer through the acquirer, which debits the merchant and handles representment.
Acquirer vs issuer vs PSP vs processor: what is the difference?
Four roles are often merged in everyday language. The guide to payment service providers covers how they combine in one contract; the table shows which side each role serves. For a side-by-side table of the acquiring bank vs issuing bank, see acquirer vs issuer.
| Role | Serves | Main job | Fee it earns |
|---|---|---|---|
| Issuer | The cardholder | Issues cards, approves payments, bills the cardholder | Interchange, capped at 0.2% debit and 0.3% credit for EEA consumer cards |
| Acquirer | The merchant | Holds the merchant contract, settles funds, carries merchant risk | Acquirer margin, set by contract |
| Processor | Issuer or acquirer | Runs the transaction messaging and data technically | Per-transaction processing fee |
| PSP | The merchant | Bundles gateway, methods and often acquiring in one contract | Blended or interchange++ pricing |
What do merchants pay the acquirer?
The merchant service charge on a card payment includes interchange for the issuer, the scheme fee for Visa or Mastercard and the acquirer's own margin. Only the margin is negotiable. Acquirers also charge for chargebacks, typically €15 to €25 each, may hold a rolling reserve for higher-risk businesses, and charge for currency conversion when settling in another currency.
Which companies are acquirers?
European examples include Adyen, Worldline, Nexi, Global Payments, which completed its acquisition of Worldpay in January 2026, Elavon, Fiserv and Barclaycard, alongside the acquiring arms of many national banks. Many PSPs either hold an acquiring licence themselves or resell the services of one of these acquirers. OrsunPay is not an acquirer; it connects a merchant's own acquirer and PSP accounts through one integration.
Frequently asked questions
What is an acquiring bank?
An acquiring bank is an acquirer that is a licensed bank. It holds the merchant's card acceptance contract and settles card payments to the merchant's account.
What is the difference between an acquirer and an issuer?
The issuer gives the card to the shopper and approves the payment; the acquirer signs the merchant and receives the funds for it. Interchange flows from the acquirer to the issuer on each payment.
Is a payment gateway the same as an acquirer?
No. A gateway captures and transmits payment data, while the acquirer holds the merchant contract and moves the money. Many PSPs offer both, so merchants often see one contract.
What is an acquirer reference number (ARN)?
It is a 23-digit number the acquirer assigns to a card transaction or refund. Issuers use it to trace the transaction, which helps when a shopper asks where a refund is.
Can a merchant work with more than one acquirer?
Yes. Larger merchants often use separate acquirers per region or as a fallback, which can raise approval rates and lower costs. Each relationship needs its own contract and onboarding.