Acquiring Bank
The bank that processes card transactions for merchants.
Detailed Description
Acquiring Bank
What is the primary function of an acquiring bank?
The primary function of an acquiring bank is to authorize, process, and settle card transactions on behalf of merchants.
How do acquiring banks support merchants?
Acquiring banks support merchants by providing payment processing solutions, such as POS systems and online payment gateways, along with customer service and technical assistance.
What are processing fees charged by acquiring banks?
Processing fees charged by acquiring banks typically include a discount rate, transaction processing fees, monthly maintenance charges, and fees for chargebacks.
What is the difference between an acquiring bank and an issuing bank?
An acquiring bank processes transactions for merchants, while an issuing bank provides credit or debit cards to consumers.
How do acquiring banks manage risk?
Acquiring banks manage risk through transaction monitoring, fraud detection systems, and chargeback management processes, assessing the risk profile of each merchant.