How does acquirer work for visa mastercard?

Answer 1

An acquirer, also known as a merchant bank, is a financial institution that processes credit and debit card transactions on behalf of a merchant. When a customer makes a purchase using a Visa or MasterCard, the acquirer communicates with the card network to verify the transaction, ensuring that the customer has sufficient funds and that the transaction is legitimate. Once approved, the acquirer facilitates the transfer of funds from the cardholder's bank to the merchant's account, typically charging a fee for this service. Essentially, the acquirer plays a crucial role in enabling electronic payments and managing the flow of funds between customers and merchants.