💼 Acquiring 101: What Is an AcquirerAcquirer acquirer A financial institution or payment processor that manages the merchant account, enabling businesses to accept card payments. Acquirers receive all transactions from the merchant and route them to the appropriate issuing bank. in Payments?
In the world of digital payments, acquiring is one of the most critical yet often misunderstood components. Whether you’re running a corner café or a global eCommerceeCommerce ecommerce Commercial transactions conducted electronically on the internet. Includes digital payments, shopping carts, and fraud prevention. platform, chances are your transactionsTransactions transactions Interactions where value is exchanged for goods or services. are being processed by an acquirer.
Let’s break down what acquiring means, how it differs from payment gateways, explore types of acquiring, and map the leading acquiring banks and processors across the world.
🏦 Who Is an Acquirer?
An acquirer (or acquiring bank) is a financial institution or licensed payment company that enables merchants to accept card payments. They act as the merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services.’s bank, handling:
- AuthorizationAuthorization authorization The real-time process of verifying that a payment method has sufficient funds or credit limit for a transaction. Results in an authorization code from the issuer. of payments
- ClearingClearing clearing The exchange of financial information and instructions between acquirers and issuers to facilitate settlement. and settlementSettlement settlement The process of transferring funds from the issuer to the acquirer. with card networks (e.g., VisaVisa visa A leading global payment technology company connecting consumers, businesses, and banks., MastercardMasterCard mastercard A global payments network enabling electronic transactions between banks, merchants, and cardholders.)
- Payouts to the merchant
- Risk and fraudFraud fraud Criminal deception involving unauthorized payments or use of financial credentials. management
- ChargebackChargeback chargeback A dispute raised by the cardholder that results in reversal of a transaction. Can lead to penalties for merchants. handling
Acquirers are part of the money flow: they settle funds to the merchant after deducting fees like interchange, network, and acquiring margin.
🔄 Acquirer vs Payment GatewayGateway gateway A service that authorizes and processes card payments for online merchants. Examples include Stripe, Adyen, and PayPal.: What’s the Difference?
| Aspect | Acquirer | Payment Gateway |
|---|---|---|
| Role | Financial institution that moves money | Tech layer that captures card data |
| Part of Money Flow? | ✅ Yes | ❌ No (just routes data) |
| License Required | Yes – needs banking/payment institution license | No (can operate as a SaaS) |
| Risk Handling | Handles fraud, compliance, and chargebacks | Passes risk data to acquirer |
| Example | Worldpay, Adyen | Stripe, Checkout.com |
⚠️ Note: Many companies today blur the lines by offering both acquiring and gateway services, but technically they are distinct roles.
🔄 Terms Often Used Interchangeably (But Are Not Always the Same)
- Acquirer = Acquiring Bank
- ProcessorProcessor processor A company authorized to process credit and debit card transactions between acquirers and issuers. = Tech arm of the acquirer (e.g., First Data for Fiserv)
- Merchant Services Provider = Often refers to acquirer + POS + onboarding
- Payment Gateway = Only the interface to captureCapture capture The act of finalizing an authorized payment. Funds are transferred from the cardholder’s account to the merchant. and encrypt card details
- PSP (Payment Service Provider) = May bundle gateway, acquiring, fraud, etc.
🌐 Top Acquirers Around the World (with Links)
| Region | Acquirer | Website |
|---|---|---|
| North America | Chase Merchant Services | https://merchantservices.chase.com/ |
| Fiserv / First Data | https://www.fiserv.com | |
| Elavon | https://www.elavon.com | |
| Europe | Worldline | https://www.worldline.com |
| Nexi | https://www.nexigroup.com | |
| Adyen | https://www.adyen.com | |
| Asia-Pacific | GMO Payment Gateway | https://www.gmo-pg.com/en/ |
| Paytm Payments Bank | https://www.paytmbank.com | |
| Tyro Payments | https://www.tyro.com | |
| Latin America | Mercado Pago | https://www.mercadopago.com.ar/ |
| Cielo | https://www.cielo.com.br | |
| Middle East & Africa | Network International | https://www.network.ae |
| PayTabs | https://site.paytabs.com/en/ |
💳 Ways to Acquire Payments
Acquiring isn’t limited to eCommerce or card-present retail. Let’s break down the channels:
| Channel | How It Works | Example Use Case |
|---|---|---|
| Online (Card-Not-Present) | Web/app payments via hosted checkoutHosted Checkout hosted-checkout A secure, third-party payment page where transactions are processed, helping merchants comply with PCI DSS., plugins, APIs | Shopify store, subscription app |
| In-Store (Card-Present) | POS terminals connected to the acquirer, tap/chip/swipe | Supermarket, restaurant |
| Over the Phone (MOTO) | Mail Order/Telephone Order, card details entered manually via virtual terminal | Hotel booking, call centers |
| QR Code / SoftPOS | Merchant displays QR or uses phone as terminal, integrated to acquiring backend | Street vendors, delivery agents |
| Embedded/Integrated | Payment accepted via kiosks, vending machines, IoT devices | Parking meters, ticket machines |
📌 Final Thoughts
Understanding the acquirer’s role is essential to navigating the payments ecosystem. Unlike gateways, acquirers actually move money, underwrite the merchant, and connect directly to card schemes.
In today’s world, acquirers are also tech companies—offering fraud tools, reporting dashboards, dispute management, and alternative payment acceptance—all on a single platform.
Whether you’re launching a global D2C brand or building a local marketplace, knowing how acquiring works—and choosing the right partner—can make or break your payment experience.