Acquiring Bank

Glossary

Acquiring Bank

Glossary

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Acquiring Bank is the financial institution that enters an electronic transaction into the online payment processing world. This enables online credit card authorization and payment processing. A merchant must open an internet merchant account with an acquiring bank.

The payment process includes the customer entering their credit card or direct debit details through an online purchase agreement, this is then sent to the merchant who passes it on to the acquiring bacnk. The acquirer then processes the transaction and updates the relevant accounts.