What is an Acquirer?
An acquirer (also called an acquiring bank) is a financial institution that enables merchants to accept payments from customers via debit cards, credit cards, and digital channels.
How Acquirers Work
- A customer initiates a payment at a merchant (via PoS, online, or UPI/card transaction).
- The acquirer routes the request to the respective network (Visa, Mastercard, RuPay, NPCI, etc.).
- Once approved, funds are transferred from the issuer bank to the acquirer.
- The acquirer then settles the funds into the merchant’s account.
Benefits of Acquirers for Enterprises
- Wide Acceptance: Merchants can accept multiple cards and digital methods.
- Settlement Assurance: Funds are securely transferred into merchant accounts.
- Fraud Screening: Acquirers provide fraud prevention tools and chargeback support.
- Merchant Support: Offer PoS devices, online integration, and reconciliation tools.
Is Acquiring Safe?
Yes. Acquirers are regulated entities that comply with RBI/NPCI guidelines and must follow PCI DSS (data security standards).
FAQs
Is the acquirer always the merchant’s bank?
Not always. Merchants can choose a different acquirer than their business bank.
Can one merchant have multiple acquirers?
Yes. Enterprises often onboard multiple acquirers to reduce transaction declines.
How does Phi Commerce support acquirers?
Phi Commerce integrates with multiple acquiring banks to enable smart routing, ensuring merchants get better success rates, lower MDR, and faster settlements.