An acquirer refers to a company that has the right to take over another company through a mutual contract by both parties. Acquirers are usually financial institutions who have the rights of a merchant account and can do merchant bank relayed electronic payments. Companies can take over another by entering into an agreement that allows them to pay upon an agreed period and integrate their operations for the same. 

The deal through which people acquire the status of an acquirer is usually referred to as mergers or acquisitions, or structured agreements. Acquirers pay a sum of money to take over another company by buying out the majority portion of the target company’s shares. 

A company will be attracted to buying another for several reasons. This can be the will to eliminate competition, create synergy or gain more market share. Acquirers and their relationships with companies are of different types. Companies can take over another by entering into an agreement that allows them to pay upon an agreed period and integrate their operations for the same. This purchase can be fulfilled in cash, stocks or a mix of both ways. 

An acquisition is almost always mutual, but in rare cases, it can also be one-sided. In the matter of the latter case, this is called a hostile takeover and the target will have to take measures that help them to avoid falling into this pit. 

In the case of any payment company, this acquirer can be a financial institution that is capable of doing merchant electronics depositions and withdrawals. For instance: A clothes retail store will have an electronic gateway for paying for credit cards or phones. The retailer will enlist the merchant acquirer’s services, who would overtake the bank account of the merchant and take deposits for customer payments. 

Types of acquirers

Corporate acquirers

In the case of a corporate acquisition, the acquirer is an organization who will take over another company for a mutually agreed sum. This kind of acquisition usually takes place between two parties. And allows a company to fully become the owner of another.

During this acquisition, the aim of the acquirer is to get benefits by buying a company and get benefits by eliminating the beneficial parts and eliminating the inefficient ones. In the case of acquisitions of public companies, the acquirer will keep an eye on the short-term stock price. This drop occurs due to uncertain transactions and the premium that is offered by the acquirer. 

Merchant Acquirer

In the case of a merchant acquirer agreement, the acquirer will be the third-party partner of the merchant being acquired. These merchants should join hands with the financial institution to ensure that the deal goes through and they can receive the payments that are sent through electronic medium. 

This merchant acquirer usually tends to be a bank service person who can give electronic deposits of funds from other clients who have merchant accounts. This acquirer is also known as a settlement bank since they allow merchant payments. 

Hence, each time that someone utilizes a credit or debit card to fulfill a payment, the merchant acquirer will be informed to verify and settle the transaction. A merchant acquirer also has the power to define the types of payments that can be allowed.

These merchant acquirers have a solid in with a bunch of providers, and major processors that include MasterCard, Visa, American Express, etc. Merchants might only have the way for a single branded card to be processed, and this puts a bar as to which cards the merchant can accept. 

Hence, the acquirer can shift to another merchant based on different fees and agreements. The fees that the acquirer pays per transaction are what handle the network processing. 


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