# Merchant Acquirer

*Banking & Payments — Finicade finance glossary*

A merchant acquirer is the bank or firm that signs up merchants to accept cards, routes their transactions and settles the funds. It also carries the risk that a merchant fails to deliver goods after being paid, since chargebacks land on the acquirer if the merchant is gone — which is why acquirers underwrite merchants and hold rolling reserves against risky ones.

**Also known as:** acquiring bank, merchant services provider

**Related terms:** [Payment Processor](https://finicade.com/glossary/payment-processor), [Card Network](https://finicade.com/glossary/card-network), [Interchange Fee](https://finicade.com/glossary/interchange-fee), [Chargeback](https://finicade.com/glossary/chargeback), [Card-Not-Present Fraud](https://finicade.com/glossary/card-not-present-fraud)

Source: https://finicade.com/glossary/merchant-acquirer