Talk:Acquiring bank
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[edit] What is difference between acquiring bank and issuing bank ? How does Visa/MasterCard charge issuing banks ?
An Acquiring bank provides Electronic Funds Transfer EFT Facilites to merchants. These merchants are provided with terminals that send transaction details to a processing center that verifies the available funds or credit from the associated credit card.
The issuing bank creates personal accounts for each credit card holder. The details of this account is personalised on the issued credit card. Hence a bank can be both the issuing bank and the acquiring bank as the card for the customer and the terminal for the merchant is provided by the same bank. Generally the transaction will be routed to an interchange when the issuing and acquiring bank are different. —Preceding unsigned comment added by 209.94.215.231 (talk) 19:04, 13 January 2008 (UTC)
