Acceptor

AAA

DEFINITION of 'Acceptor'

The acceptor is the third party who accepts responsibility for payment in a bill of exchange drawn upon it. The bill of exchange will generally have three parties: the drawor, the drawee and the acceptor.

INVESTOPEDIA EXPLAINS 'Acceptor'

The simplest example of an acceptor is a bank who accepts a check drawn against it and assumes responsibility for payment of the check. Company XYZ has paid Electric Company ABC through a check drawn against Bank DEF. When Electric Company ABC presents the check for payment, and the bank agrees to pay the check, it becomes the "acceptor."

RELATED TERMS
  1. Banker's Acceptance - BA

    A short-term debt instrument issued by a firm that is guaranteed ...
  2. Check

    A written, dated and signed instrument that contains an unconditional ...
  3. Bill Of Exchange

    A non-interest-bearing written order used primarily in international ...
  4. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  5. Bank Endorsement

    An endorsement by a bank for a negotiable instrument, such as ...
  6. Credit Card Authorized User

    Definition of an authorized user of a credit card.
Related Articles
  1. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  2. What Is International Trade?
    Personal Finance

    What Is International Trade?

  3. Your First Checking Account
    Insurance

    Your First Checking Account

  4. Banking Stress Tests: Would Yours Pass?
    Credit & Loans

    Banking Stress Tests: Would Yours Pass?

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center