cardacquiring

Card acquiring refers to the process by which a merchant accepts credit or debit card payments from customers. This involves setting up the necessary infrastructure and processes to handle transactions securely and efficiently. The key player in this process is the acquiring bank, also known as the merchant bank, which is a financial institution that has a relationship with the merchant. The acquiring bank authorizes and processes the card transactions on behalf of the merchant.

When a customer presents a card for payment, the transaction details are sent through a payment gateway to the acquiring bank. The acquiring bank then communicates with the card network (like Visa or Mastercard) and the issuing bank (the bank that issued the customer's card) to verify the cardholder's identity and ensure sufficient funds are available. Once authorized, the funds are transferred from the issuing bank to the acquiring bank, and subsequently to the merchant's account, minus any transaction fees. Merchants typically need to have a merchant account with an acquiring bank to accept card payments. This account facilitates the receipt of funds from card transactions. Security protocols, such as PCI DSS compliance, are crucial to protect sensitive cardholder data throughout the acquiring process.