Acquirer

What is an 'Acquirer'

An acquirer is the firm which is purchasing a company in an acquisition. The acquirer is also known as a bidder.

2. A financial institution or merchant bank (a merchant acquirer) which is contacted to authorize a credit card or debit purchase. The acquirer will either approve or decline the debit or credit card purchase amount. If approved the acquirer will then settle the transaction by placing the funds into the seller's account.

BREAKING DOWN 'Acquirer'

1. Usually the acquirer's stock price will see a short term drop when acquiring a company. The drop is due to the uncertainty of the transaction, also the acquirer will usually pay a premium for the purchase.

2. Every time you use your credit or debit card you are using the services of an acquirer. An Acquirer will charge a monthly and/or a per transaction fee to the stores or merchants to facilitate transactions. Acquirers need to be licensed with credit card companies, such as Visa or MasterCard.

RELATED TERMS
  1. Mastercard Acquirer

    A financial institution that accepts and processes transactions ...
  2. Processing Date

    The month, day and year when a merchant’s bank processes a credit ...
  3. Authorized Transaction

    A credit card purchase for which the merchant has received approval ...
  4. Authorized Amount

    A sum that a merchant transmits to a credit or debit card processor ...
  5. Settlement Bank

    The entity that facilitates the exchange of money between the ...
  6. Merchant Account

    A type of business bank account that allows a business to accept ...
Related Articles
  1. Credit & Loans

    Credit vs. Debit Cards: Which Is Better?

    Be strategic about the card you choose
  2. Credit & Loans

    Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.
  3. Credit & Loans

    Tip No.3 - Switch from Credit to Debit Cards

    Follow these tips and techniques to rebuild a ruined credit rating.
  4. Credit & Loans

    How Debit Cards Work

    Unlike credit cards, debit cards rely only on the funds available in the user’s account, so they do not let users borrow on credit. They frequently come with purchase limits, and using one at ...
  5. Credit & Loans

    10 Reasons To Use Your Credit Card

    Charging purchases is not always a no-no. In fact, there are some very sound reasons for choosing this option.
  6. Credit & Loans

    10 Reasons To Use Your Credit Card

    There are several benefits to paying with credit instead of debit, if you use a credit card responsibly.
  7. Credit & Loans

    Credit Cards: What Are Credit Cards?

    By Brigitte Yuille Think of credit as borrowed money. This money is made available to you, but it must be repaid within an agreed amount of time. Credit cards provide a line of revolving credit. ...
  8. Savings

    Banking: Debit Cards and ATMs

    By Amy FontinelleDebit cards and ATMs allow you to easily access the money in your checking account to pay for everyday purchases. In this section, we'll explain how they work. Debit CardsA debit ...
  9. Personal Finance

    What Investors Can Learn From M&A Payment Methods

    How a company pays in a merger or acquisition can reveal a lot about the buyer and seller. We tell you what to look for.
  10. Credit & Loans

    American Express's Main Competition

    American Express competes with Visa, MasterCard, and Discover Financial Services in the credit card space. It also competes with banks to draw consumers.
RELATED FAQS
  1. What happens to the stock prices of two companies involved in an acquisition?

    When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. ... Read Answer >>
  2. What are the differences between debit cards and credit cards?

    Learn how the major difference between a debit card and a credit card is where the money comes from when a customer makes ... Read Answer >>
  3. What happens when my bank account is debited?

    Understand the process that takes place when your account is debited. A debit to your account happens when you use funds ... Read Answer >>
  4. What is a tuck-in acquisition?

    A tuck-in acquisition, often referred to as a "bolt-on acquisition", is a type of acquisition in which the acquiring company ... Read Answer >>
  5. Why do credit card companies calculate revenue splits in terms of basis points?

    Discover how revenue splitting works and how credit card companies are able to utilize basis points in revenue splits to ... Read Answer >>
  6. How do you calculate credits and debits in the general ledger?

    Know the key points when balancing a ledger and why it's essential to understand the relationship between credits and debits ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center