Acquiring bank and acceptance of online payments

Posted on 11.5.2016
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Written by Eva Ciga

An acquiring bank – also known as an acquirer. It is a bank or a financial institution that processes credit and/or debit card payments. These payments are for products or services on behalf of an online merchant. Acquiring Banks accept transactions from the card-issuing banks within an association being Visa, MasterCard, Discover, American Express, Diners Club, JCB and others.

Merchant accept online payments when acquiring bank takes action

The acquirer underwrites the merchant requesting to accept online payments. It means that this is a vital part in the payments acceptance process. As part of the process, prior to signing an agreement between the merchant and the acquiring bank, the bank usually conducts due diligence in order to ensure that the merchant is genuine and is able to support their business in order to avoid fraudulent activity and also cover the consumer’s interest.

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