A federally insured financial institution that partners with a Processor, responsible for connecting merchants to the Card Associations for authorization and settlement of funds. Also known as the “merchant bank” or “sponsor bank”. Acquirers and merchants are the two signatories to a merchant agreement.

ISOs/MSPs are sponsored by Acquirers to sign merchant agreements on their behalf. The Acquirer handles all monies related to a merchant account, from the daily deposit of card totals to the monthly debit of fees associated with the account.