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Financial institutions and payment networks enable payment services. These entities work together to complete the full payment cycle.

Merchant Financial Institutions (Acquirers)

A merchant financial institution, also known as an
acquirer
, offers accounts to businesses that accept payment cards. Before you can accept payments, you must have a merchant account from an acquirer. Your merchant account must be configured to process card-not-present, card-present, or mail-order/telephone-order (MOTO) transactions.
If excessive chargebacks or fraudulant changes occur, these actions may be taken:
  • You may be required to change your business processes to reduce the number chargebacks and/or fraud.
  • Your acquiring institution might increase your discount rate.
  • Your acquiring institution might revoke your merchant account.
Contact your sales representative for information about products that can help prevent fraud.

Issuing (Customer) Financial Institutions

An issuing (customer) financial institution, also known as an issuer, provides payment cards to and underwrites lines of credit for their customers. The issuer provides monthly statements and collects payments. The issuer must follow the rules of the payment card companies to which they belong.

Payment Networks

Payment networks manage communications between acquiring financial institutions and issuing financial institutions. They also develop industry standards, support their brands, and establish fees for acquiring institutions.
Some payment networks, such as Visa and Mastercard, are trade associations that do not issue cards. Issuers are members of these associations, and they issue cards under license from the association.
Other networks, such as Discover and American Express, issue their own cards. Before you process cards from these companies, you must sign agreements with them.

Payment Processors

Payment processors connect with acquirers. Before you can accept payments, you must register with .
assigns one or more merchant IDs (MIDs) to your business. These unique codes identify your business during payment transactions.