Card payment acquiring is the process by which a merchant or business accepts payment via credit or debit card from a customer. The acquiring bank, also known as the merchant bank, provides the merchant with the equipment and software necessary to accept payments, as well as handling the transaction process and settling the funds into the merchant’s account.
When a customer makes a purchase using their card, the transaction information is transmitted to the acquiring bank, which then contacts the cardholder’s issuing bank to verify that the funds are available and to authorize the transaction. Once authorized, the acquiring bank processes the transaction and settles the funds into the merchant’s account, typically within 1-2 business days.
Card payment acquiring is a critical component of modern commerce, allowing businesses to accept payment from customers quickly and securely. It also provides benefits such as reducing the need for cash handling, simplifying accounting and record-keeping, and improving the customer experience by offering multiple payment options.