What is the main role of a financial institution in the capacity of an Acquirer/Processor?

The main role of a financial institution functioning as an Acquirer/Processor is to process transactions and facilitate settlements between merchants and card networks. This involves receiving transaction requests from merchants, validating them, and ensuring that these transactions are properly routed through the payment networks to the issuing banks.

The Acquirer is responsible for establishing and maintaining merchant accounts and providing the necessary infrastructure to support payment processing. This includes ensuring compliance with payment network rules and security standards, such as the Payment Card Industry Data Security Standard (PCI DSS). The Acquirer also handles the financial aspects of the transaction, managing the funds flow from the customer’s bank to the merchant after a sale is completed.

Other roles listed, such as issuing debit cards or managing blockchain technology, are not directly related to the primary function of an Acquirer/Processor. Additionally, while regulatory bodies play a crucial role in overseeing financial transactions, they are separate entities from the operational functions performed by Acquirers/Processors.