Acquirer
Barron's Banking Dictionary:
Top
Acquirer
1. in bank cards, a bank that purchases merchant sales drafts, also called the Merchant Bank. Merchants receive credit for the dollar value of credit card receipts, less a processing fee (the Merchant Discount Rate ).
2. In Automated Teller Machine networks, the financial institution that dispenses the cash, collecting a transaction fee from the card issuing bank.
3. Bank gaining control over another financial institution, either through an exchange of stock, payment in cash, or a combination.
Investopedia Financial Dictionary:
Top
Acquirer
1. The firm which is purchasing a company in an acquisition. The acquirer is also known as a bidder.
2. A financial institution or merchant bank (a merchant acquirer) which is contacted to authorize a credit card or debit purchase. The acquirer will either approve or decline the debit or credit card purchase amount. If approved the acquirer will then settle the transaction by placing the funds into the seller's account.
Investopedia Says:
1. Usually the acquirer's stock price will see a short term drop when acquiring a company. The drop is due to the uncertainty of the transaction, also the acquirer will usually pay a premium for the purchase.
2. Every time you use your credit or debit card you are using the services of an acquirer. An Acquirer will charge a monthly and/or a per transaction fee to the stores or merchants to facilitate transactions. Acquirers need to be licensed with credit card companies, such as Visa or MasterCard.
Related Links:
Mergers and acquisitions can mean big success. But what about all the deals that fall through? 8 Reasons M&A Deals Fall Through
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
Read more
Mentioned in
Target Company
(business term)
White Knight
(finance term)
Freeze Out
(finance term)
Proxy Fight
(business term)
» More