What best describes the relationship between a chargeback and an acquirer?

The relationship between a chargeback and an acquirer is best described by stating that the acquirer processes the chargeback on behalf of the issuer. In the payment processing ecosystem, the acquirer acts as the financial institution that processes card payments for merchants. When a cardholder disputes a transaction, the issuer (the cardholder's bank) initiates a chargeback process. The acquirer plays a crucial role in this process by handling the chargeback claims made by the issuer. This involves forwarding the necessary information back and forth between the merchant and the issuer, ensuring that proper documentation is maintained and that the situation is resolved according to the relevant payment processing rules.

Understanding this relationship highlights the acquirer's role as a facilitator in managing transaction disputes, rather than being a party to the dispute itself or unilaterally approving or denying chargeback requests. Additionally, while monitoring chargeback statistics is important for acquirers to manage risk and identify trends, the primary function in this context is the processing of the chargeback on behalf of the issuer.