What is a merchant acquirer?

Ever wondered how your favorite coffee shop or online store seamlessly processes your card payment in seconds? That’s where merchant acquirers can come in - acting behind the scenes to make digital transactions possible.

Whether you're a small business looking to go cashless, an eCommerce giant processing thousands of transactions daily, or a subscription service managing recurring payments, the right merchant acquirer will keep your payments secure, compliant, and hassle-free.

In this guide, we’ll break down everything you need to know about merchant acquiring - how it works, why it’s important, and how to choose the perfect acquirer for your business.

What is merchant acquiring?

Merchant acquiring is the backbone of digital payments, enabling businesses to accept debit and credit card payments seamlessly.

A merchant acquirer, also known as an acquiring bank, is a financial institution that provides merchants with the infrastructure needed to process payment transactions securely.

When a customer pays using a card - whether that be in a physical store via a point-of-sale terminal or online through a payment gateway - the merchant acquirer steps in to facilitate efficient and secure transactions. They ensure that payments are authorized, funds are settled, and merchants receive their earnings promptly.

Beyond simply handling transactions, merchant acquirers also play an indispensable role in compliance and risk management.

They ensure businesses strictly adhere to payment network regulations, mitigate fraud risks, and manage chargeback disputes. Since acquirers bear financial liability for processed transactions, they carefully vet merchants and monitor transaction patterns to prevent fraudulent activities.

Many merchant acquirers provide additional value-added services such as fraud prevention tools, analytics, and multi-currency support, helping businesses optimize payment acceptance and grow in a competitive market.

Why is it called merchant acquiring?

The term merchant acquiring originates from the fundamental role these financial institutions play in enabling businesses to accept card payments. A merchant acquirer is responsible for 'acquiring' transactions on behalf of merchants, ensuring that payments made by customers reach the merchant's account securely and efficiently.

Acquirers are licensed by major card networks like Visa, Mastercard, and American Express giving them the authority to process payments from customers' cards.

This process involves authorizing transactions, transferring funds from the customer's issuing bank, as well as managing risks such as chargebacks and fraud.

While the term 'acquirer' can often refer to corporate acquisitions, in the payments industry, it specifically describes institutions that facilitate and process card transactions.

Over time, merchant acquiring has evolved beyond just card payments, now encompassing alternative payment methods such as digital wallets, contactless payments, and even cryptocurrency transactions in some cases.

Who needs a merchant acquirer?

Any business that wants to accept card payments - whether in-store, online, or on the go - needs a merchant acquirer. They ensure that payments are processed securely and that merchants receive their funds efficiently.

Brick-and-mortar retailers

Physical stores, from local boutiques to large retail chains, rely on merchant acquirers to provide point-of-sale (POS) terminals that accept credit and debit card payments.

Without an acquirer, these businesses would be limited to cash transactions, reducing convenience for customers and potentially losing sales.

eCommerce businesses

For online stores, a merchant acquirer is essential in providing payment gateway services, allowing customers to pay seamlessly using their cards or digital wallets.

Without an acquirer, online transactions cannot be authorized, leaving businesses unable to facilitate secure transactions.

Subscription & service-based companies

Subscription businesses offering recurring payments, such as streaming services, SaaS platforms, and membership-based businesses, need an acquirer to manage automated billing and ensure secure, recurring transactions.

Businesses accepting international payments

Companies with global customers benefit from merchant acquirers that support multi-currency transactions and cross-border payments, enabling them to expand their reach without payment barriers.

High-volume and specialized merchants

Industries such as travel, gaming, or financial services often require specialized merchant-acquiring solutions that handle higher transaction volumes and mitigate potential fraud risks.

The importance of merchant acquirers

Merchant acquirers ensure that businesses can accept card payments securely, efficiently, and in compliance with industry regulations.

Whether a company operates online, in-store, or both, a reliable merchant acquirer is essential for maintaining smooth transactions and financial stability.

Secure & reliable transactions

The merchant-acquiring bank plays a crucial role in protecting businesses from fraud, chargebacks, and payment disputes.

By implementing advanced security measures and fraud prevention tools, they help mitigate risks that could otherwise result in financial losses.

Seamless payment processing

Through established relationships with card networks (Visa or Mastercard) and issuing banks, acquirers ensure that payments flow effortlessly between customers and businesses.

A streamlined payment processing strategy enhances customer experience and helps merchants avoid payment disruptions.

Compliance & risk management

Navigating the complex landscape of payment regulations and security standards (like PCI DSS) can be overwhelming for businesses.

Merchant acquirers provide compliance support, helping merchants meet industry requirements while reducing liability and regulatory risks.

Optimized revenue & growth

Beyond transaction processing, acquirers offer value-added services such as multi-currency support, data analytics, and chargeback management.

These features help businesses increase revenue, improve cash flow, and expand into new markets without technical barriers.

Efficient fund settlements

Acting as a bridge between the merchant's bank and the cardholder's issuing bank, merchant acquirers ensure that funds from electronic transactions are transferred promptly and accurately, managing fees, refunds, and settlements to keep businesses running smoothly.

How do payment processors & acquirers work together?

Payment processors and merchant acquirers work together to create a seamless, secure, and efficient payment experience for both businesses and customers. While they serve different roles, their collaboration is essential in ensuring transactions are authorized, processed, and settled correctly.

When a customer makes a purchase using a credit or debit card, the payment processor handles the secure transmission of transaction data between the merchant, the card network, and the cardholder's issuing bank. It ensures that the payment request is authenticated, verified, and either approved or declined in real-time.

Meanwhile, the merchant acquirer is responsible for managing the merchant’s account and handling the secure transfer of funds.

Once a transaction is approved, merchant acquirers and payment card networks work together to settle payments, ensuring that the merchant receives the correct amount after processing fees and potential chargebacks are accounted for.

Acquirers also bear financial liability for transactions, taking on risks associated with chargebacks and fraud, whereas payment processors focus on securing and optimizing the transaction cash flow.

These two entities are typically tightly integrated, allowing businesses to accept payments effortlessly while ensuring compliance, security, and operational efficiency.

Ultimately, this partnership allows for instantaneous authorization, smooth fund transfers, and minimal friction for both merchants and customers, making digital transactions a reliable and scalable solution for businesses of all sizes.

Examples of merchant acquiring

Merchant acquirers are the key enablers of digital payments, allowing businesses to accept credit and debit card transactions securely. They act as intermediaries between merchants, card networks, and issuing banks, ensuring seamless payment processing.

Several well-known merchant acquirers operate globally, providing businesses with essential payment solutions.

Major merchant acquirers

Financial institutions like Wells Fargo, Bank of America Merchant Services, and Paysafe offer merchant acquiring services, helping businesses accept card payments efficiently.

These acquirers typically serve a wide range of industries, from retail to hospitality, by providing both in-store and online payment solutions.

Tech-driven acquirers

Companies such as Adyen, WorldPay, and Nuvei have taken a more technology-focused approach, integrating payment processing with analytics, fraud prevention, and multi-currency support.

Their solutions cater to businesses that operate on a global scale, enabling them to accept payments across various channels.

Specialized & alternative acquirers

Providers like GoCardless focus on direct debit and recurring payment solutions, making them a strong choice for subscription-based businesses.

Meanwhile, other emerging players are pushing the boundaries of traditional acquiring by incorporating digital wallets, cryptocurrency acceptance, and AI-driven fraud detection.

With the merchant acquiring market continuously evolving, businesses today have more options than ever to find the right payment partner, whether they need traditional banking support, tech-driven payment processing, or alternative payment methods to stay ahead in an increasingly cashless world.

Who are the top merchant acquirers?

Let's take a look at some of the top merchant acquirers in the industry.

Adyen

Adyen is a global payment provider known for its unified commerce solutions. As both a merchant acquirer and a payment processor, Adyen offers businesses a single platform to handle online, in-store, and mobile transactions.

Its advanced fraud prevention tools, global reach, and ability to support multiple payment methods make it a favourite among conglomerates like Spotify and Uber.

WorldPay

WorldPay, a subsidiary of FIS, is one of the largest and most established merchant acquirers globally.

It processes billions of transactions annually and offers comprehensive payment solutions, including point-of-sale (POS) systems, eCommerce payment processing, and fraud protection.

WorldPay’s presence in multiple markets makes it a top contender for businesses looking to scale internationally.

Fiserv (First Data)

Fiserv, formally known as First Data, is a leading merchant acquirer that provides payment processing solutions to millions of businesses worldwide.

Known for its Clover POS system, First Data caters to both small businesses and large enterprises, offering robust merchant acquiring services, analytics, and fraud management tools.

Nuvei

Nuvei is a fast-growing, technology-driven merchant acquirer that specializes in high-growth and international markets. It supports 150+ currencies and multiple payment methods, including cryptocurrency transactions.

With a focus on iGaming, eCommerce, and fintech, Nuvei is known for its scalable and flexible payment solutions.

Paysafe

Paysafe is a specialized merchant acquirer offering services for businesses that require alternative payment methods, including digital wallets and prepaid cards.

It has a strong foothold in online gaming, high-risk industries, and cross-border transactions, making it an ideal choice for businesses needing tailored payment solutions.

GoCardless

GoCardless stands out by focusing on direct debit and recurring payments, making it a leading choice for subscription-based businesses and B2B transactions.

Unlike traditional acquirers, GoCardless enables merchants to pull payments directly from customer bank accounts, reducing reliance on card networks and lowering transaction fees.

How to choose the right merchant acquirer?

Choosing a merchant acquirer is more than just a financial decision - it’s a strategic move that can impact your business’s growth and customer experience.

By carefully evaluating your needs, assessing compatibility, and ensuring seamless integration, you can select a partner that supports your payment processing needs while enabling long-term success.

1. Define your business requirements

Before reaching out to potential acquirers, create a checklist of your needs. Consider factors such as:

• The types of payment cards you want to accept (Visa, Mastercard, American Express, etc)
• Whether you need eCommerce support, in-person payment solutions, or both
• Your target market - whether that be domestic, international, or both
• Additional features like recurring billing or multi-currency support for payment transactions

Understanding these requirements will help narrow down your options and ensure you choose the payment services provider that best aligns with your operational goals.

2. Assess risk & compatibility

Not all merchant acquirers work with every type of business. Some acquirers have strict policies against industries they deem high-risk, such as gaming and gambling, adult content, or CBD sales.

Before committing, research whether the acquirer is comfortable working with businesses in your industry vertical. If you’re in a high-risk category, seek out providers specializing in your industry.

3. Verify payment method support

A good merchant payment service provider should offer broad payment acceptance. Check whether they support:

• Major credit and debit card networks (Visa, Mastercard, Discover, American Express)
• Alternative payment methods like digital wallets (Apple Pay, Google Pay)
• Regional payment systems (for example, Union Pay), if relevant to your customer base

Ensuring compatibility with preferred payment methods can reduce transaction friction and improve the overall customer experience.

4. Look for seamless integration options

Your merchant acquirer should work well with your existing payment ecosystem. Ask about:

• Integration with online checkout solutions, point-of-sale (POS) systems, and other eCommerce platforms
• Compatibility with fraud prevention tools and customer authentication methods
• Partnerships with third-party merchant service providers to streamline operations

Choosing an acquirer that integrates smoothly with your current technology stack can simplify payment management and reduce operational headaches.

5. Seek preliminary feedback

Before submitting a formal application, contact potential acquirers for preliminary discussions. This can help you:

• Understand their specific onboarding criteria
• Gauge their responsiveness and customer service quality
• Identify any potential red flags before investing time in an application

This step can save you from unnecessary rejections and help refine your approach when applying.

Conclusion

Choosing the right merchant acquirer isn’t just about processing payments - it’s about creating a seamless, secure, and scalable payment experience for your customers.

With the right partner, businesses can minimize fraud risks, streamline compliance, and unlock new revenue opportunities in an increasingly digital economy.

Whether you're a small business owner, an enterprise retailer, or an online subscription service, working with a reliable acquirer ensures that every transaction runs smoothly and efficiently.

At Nuvei, we specialize in fast, flexible, and future-proof payment solutions designed to help businesses thrive. From global payment processing to advanced fraud protection and multi-currency support, our technology-driven approach ensures you stay ahead in an evolving payments landscape.

Ready to optimize your payment strategy? Partner with Nuvei and experience a smarter way to accept payments. Get in touch today to learn more!‍