Acquirer

An acquirer (acquiring bank) is the financial institution that accepts card payments for an online store or shop, gets them approved via the card network and pays the money out to the merchant. On the other side sits the issuer: the bank that issued the card to the customer. On Shopify you barely notice the acquirer, because Shopify Payments bundles everything into one service. More on that in our guide to Shopify payments.

In short

The acquirer works for the merchant, the issuer for the customer.

On every payment the acquirer pays interchange to the issuer and pays the rest out to you.

With Shopify Payments you do not need a separate acquiring contract.

What does an acquirer do in a card payment?

The customer pays by card in your checkout.

The payment gateway sends the details, encrypted, to the acquirer.

The acquirer requests approval from the issuer via Visa or Mastercard.

Once approved, the amount is settled; the acquirer pays interchange to the issuer.

The acquirer pays the balance out to the merchant, minus fees.

The acquirer also carries part of the risk: in a chargeback it reclaims the money from the merchant. That is why acquirers can hold reserves or temporarily hold back payouts.

What does the issuer do?

The issuer is the bank or institution that issued the card to your customer, usually a Belgian or Dutch consumer's own bank. On every payment the issuer decides whether to approve it: is the card valid, is there enough balance or credit, and is the customer who they claim to be? For that last check the issuer asks for strong customer authentication through 3D Secure, as PSD2 requires in Europe. If the issuer declines, you see a declined payment in Shopify. If your customer later disputes a purchase, the issuer starts the chargeback. On every payment the issuer receives the interchange fee from the acquirer.

Acquirer, gateway or payment provider?

Most online stores do not sign a separate contract with an acquirer. They choose a payment provider that takes care of it.

The acquirer behind Shopify Payments

Shopify Payments is a full payment service: you activate it with no setup or monthly fees and get one rate, one dashboard and one payout. Acquiring happens behind the scenes through Shopify's partners. Where you notice that role is in payout schedules (at least 3 business days in Belgium and the Netherlands) and any reserves. More on that in payouts and pending payments in Shopify Payments.

Example in a Shopify context

After a series of chargebacks, a growing brand sees part of its payouts held back temporarily. That is the acquiring side of Shopify Payments limiting risk. Your own acquirer through an enterprise provider can offer different terms, but it requires more volume and more admin.

Frequently asked questions

What is an acquirer?

The bank or payment institution that accepts card payments for a merchant, gets them approved and pays the money out to the merchant.

What is the difference between an acquirer and an issuer?

The acquirer works for the merchant; the issuer is the bank that issued the card to the customer. On every payment the acquirer pays an interchange fee to the issuer.

Do I need my own acquirer on Shopify?

No. With Shopify Payments or a provider such as Mollie, acquiring is part of the service. A separate acquiring contract is mainly something for large, international brands.