In practice
The acquirer is the network member that sponsors the merchant into the card system, settles its transactions and is responsible to the networks for its activity. That is why acquirers set underwriting standards, hold reserves and run monitoring. Processors, ISOs and payment facilitators often operate under an acquirer's sponsorship.
Common confusion
The company a merchant signs with is not always the acquirer; it may be an ISO, processor or payment facilitator working under the acquirer's license.
Frequently asked questions
Is an acquirer the same as a payment processor?
Not always. The acquirer holds network membership and liability; a processor may handle the technical processing on its behalf.
Why does the acquirer matter to merchants?
Its risk appetite and contract terms decide approval, reserves and monitoring.