An acquiring bank onboards shops and online sellers so they can take card payments. It routes transactions, pays the merchant after fees, and manages chargebacks when a customer disputes a sale.
Key takeaways
- Merchants usually pay the acquirer a fee package that includes scheme and processing costs.
- Settlement can take one or more business days depending on the contract and rails.
- High chargeback rates can lead to higher fees or account closure.
- Some firms act as payment facilitators in front of a licensed acquirer rather than as the bank itself.