How an acquirer works
The acquirer signs a merchant agreement, checks the business and opens a merchant account. For each payment the acquirer passes the authorisation request to the issuer through the scheme, then submits the captured transaction for clearing.
The issuer's funds arrive through the scheme's settlement. The acquirer pays the merchant, less the merchant service charge, which covers interchange, scheme fees and the acquirer's own margin.
How EU law defines an acquirer
The Interchange Fee Regulation, Regulation (EU) 2015/751, defines an acquirer as a payment service provider contracting with a payee to accept and process card-based payment transactions, which result in a transfer of funds to the payee. PSD2 lists the acquiring of payment transactions among the payment services in its Annex I, so acquiring is a regulated activity.
Under Article 9 of the Interchange Fee Regulation, an acquirer offers and charges merchant service charges specified individually for different categories and brands of cards, unless the merchant asks in writing for a blended charge.
What an acquirer is responsible for
The acquirer carries the merchant's risk towards the scheme. If a merchant cannot pay its chargebacks or refunds, the loss falls on the acquirer, which is why acquirers underwrite merchants, monitor them and hold reserves.
Acquirer, processor or payment facilitator?
- Payment processor
- Runs the technical connection to the schemes for an acquirer. A processor need not be a scheme member or hold the merchant's money.
- Payment facilitator
- Signs sub-merchants under its own agreement with an acquirer. The acquirer stays the scheme member behind every payment.
- Issuer
- The cardholder's side: the provider that issued the card and approves or declines each payment.
Where an acquirer shows up in a platform
Modules that do the work
- Card acquiringCard acceptance on the phone, in store and online, through the acquirer you choose.
- Merchant onboardingBusiness sign-up, verification and underwriting, from application to first payment.
- PayoutsMoney out to bank accounts, cards and wallets, on the rail that fits each payment.
- Fraud & riskReal-time fraud scoring, limits and case management, with the risk engines you already trust.
Platforms that need it
Guides that go deeper
Where it is written
The laws and standards this page's facts come from.
- Regulation (EU) 2015/751, the Interchange Fee Regulation, Articles 2 and 9 (EUR-Lex)
- Directive (EU) 2015/2366, PSD2, Article 4(44) and Annex I (EUR-Lex)
General information, not legal advice: what applies to you depends on your services and your market.