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.


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."

  1. Check

    A written, dated and signed instrument that contains an unconditional ...
  2. Bank Draft

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

    An endorsement by a bank for a negotiable instrument, such as ...
  4. Bill Of Exchange

    A non-interest-bearing written order used primarily in international ...
  5. Banker's Acceptance - BA

    A short-term debt instrument issued by a firm that is guaranteed ...
  6. Remittance

    The term most commonly refers to money being sent via mail or ...
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