What Role Do Acquiring Banks Play?

An acquiring bank (merchant bank) performs a variety of functions concerning online credit card processing and electronic commerce. A real acquiring bank doesn’t have an actual brick and mortar building or office where you can just walk in and open a checking account. They carry out critical functions without the need for a physical presence since they primarily deal with other providers of merchant accounts and business-based financial institutions overall.

Today, more products and services are bought online through credit card processing transactions, e-checks, and ACH transfers more than ever. Acquiring banks mostly serve as a kind of middleman for these electronic transactions. Overall, they’re the connection between merchant accounts and the banks that issued the credit cards. The acquiring bank is liable for the proficient flow of information and data that inevitably transfers between the two.

There are a number of steps that take place in the average electronic transaction process. First, a client decides to buy a particular item at a store. She swipes her credit card in the terminal or sometimes enters her credit card info onto a website’s checkout page. Upon verifying the data, she proceeds making the purchase. The data then transfers to the acquiring bank in order to be processed. The acquiring bank is informed that the holder of the credit card wishes to buy the item and then charges the funds to her card. The acquiring bank notes the request and subsequently transmits the information along to the appropriate credit card issuing bank in order to be approved.

It’s the issuing bank rather than the acquiring bank that literally approves or declines the transaction. If it’s approved, the issuing bank transmits an authorization code directly back to the acquiring bank who then notifies the store of the decision. If the transaction is approved, the funds are then transmitted from the issuing bank via the acquiring bank minus the interchange fee for the client’s transaction. Next, the acquiring bank will then take a cut from the entire amount of funds received from the issuing bank and will proceed to deposit the remainder into the checking account of the merchant or other chosen business bank account.

Due to the ever-evolving competition from other kinds of financial institutions and banks who continue to progress in technological advances, several acquiring banks are looking at their overall business structures in order to incorporate key changes that would eventually support new growth.



It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

Call (866) 837-0751 for details.