What is an acquiring bank? How card payments reach a business
By SendPay Business · · 2 min read
- 1Your card appears in your app
- 2Tap it to pay in a shop
- 3See every payment as it happens
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.
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What it does
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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.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.