Accredited ACH Professional (AAP) Practice Exam

What is the role of the Acquirer in a card payment system?

1. To issue credit cards

2. To process card transactions for the merchant

3. To manage cardholder accounts

4. To facilitate bank-to-bank transfers

The correct answer is: To process card transactions for the merchant

The Acquirer plays a vital role in the card payment system as it is responsible for processing card transactions on behalf of the merchant. When a customer makes a purchase using a credit or debit card, the Acquirer connects with the card network (like Visa or Mastercard) to facilitate the transaction. This involves verifying the card's authenticity, obtaining authorization from the card issuer, and ensuring the transaction amount is processed and settled properly. Additionally, the Acquirer manages the relationship with the merchant, providing them with payment processing services, handling any related fees, and ensuring that funds are transferred from the card issuer to the merchant's account. This function is crucial for enabling merchants to accept card payments smoothly and efficiently. The other options reflect functions that are typically outside of the Acquirer's responsibilities. For example, issuing credit cards is primarily the role of issuers (financial institutions), while managing cardholder accounts pertains to the issuer’s function in maintaining customer accounts. Facilitating bank-to-bank transfers is generally the domain of banks and payment systems, rather than the Acquirer specifically dealing with card transactions.