What does Acquiring financial institution mean?
A bank that settles and processes a business’ daily transactions, which vary from credit cards to on-line transactions, after which it then settles these transactions with the appropriate association or credit card issuer, is known as an acquiring financial institution. These businesses and merchants have to maintain an account like this in order to receive credit for such transactions.
Card transaction totals are first settled and the appropriate discount fees are taken into consideration and deduced after which the rest is deposited on a daily basis in the businessman’s account. If done right everybody benefits from the aquiring institution’s involvement, it facilitates the paperwork for the businessman and deals with the credit transactions on the behalf of the banks, while keeping a part of the earnings as fee for acting as an intermediary between the two parties.