What is an acquiring bank? How card payments reach a business
By SendPay Business · · 2 min read
An acquiring bank, or acquirer, is the bank or licensed firm that accepts card payments on a business's behalf. When a customer pays by card, the acquirer asks the customer's bank to approve it, collects the money through the card network and pays it out to the business.
Who's involved in a card payment
- The cardholder, who pays.
- The issuer, the bank or firm that gave them the card.
- The card network, such as Visa or Mastercard, which connects the two sides.
- The acquirer, which works for the business taking the payment.
- The business, which receives the money.
What the acquirer does
It sends each payment for approval, settles the money into the business's account, usually a day or two later, and handles chargebacks when a customer disputes a payment. It also checks the business before taking it on, because it carries the risk if things go wrong.
What it charges
Businesses usually pay a fee on each card payment. Part of it goes to the card issuer as interchange, part to the card network, and the rest is the acquirer's margin. Many small businesses reach an acquirer through a payment provider rather than directly.
Where SendPay fits
SendPay platforms let you take payments with payment links and invoices under your own brand, powered by licensed partners, so you don't need to set up your own acquiring relationship to get started.
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Build my platform →Questions people ask
What is an interchange fee?
The fee the issuer receives on each card payment.
What is an interchange fee? →What is a chargeback?
When a card payment is reversed. The guide explains how.
What is a chargeback? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.