An acquiring bank (or acquirer) is a financial institution that maintains the merchant’s bank account and processes their credit and debit card payments on behalf of the card networks (like Visa and Mastercard). They are licensed by the card networks to provide merchant accounts. In the case of Stripe, they act as the acquirer for all the merchants on their platform, simplifying the process so merchants don’t need a direct relationship with a traditional bank for payment processing.
Frequently Asked Questions (FAQs)
- Do I need to find my own acquiring bank to use Charge for Stripe?
No. Stripe handles this for you. They act as the merchant’s acquirer, which is one of the main benefits of using an all-in-one payment service provider. - What is the acquirer’s role in a transaction?
The acquirer receives the transaction details from the payment processor, sends the authorization request to the issuing bank via the card network, and, upon approval, credits the merchant’s account for the sale. - How does the acquiring bank relate to transaction fees?
The acquirer charges the merchant a fee for their services, which is bundled into the overall transaction fee you pay to Stripe. This fee covers the cost and risk of processing payments.
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