What is the role of an acquirer in the payments system?

The role of an acquirer in the payments system is to enter into contracts with merchants for card acceptance. This is a fundamental responsibility of acquirers, as they facilitate transactions between consumers and merchants by enabling merchants to accept various forms of electronic payments, including credit and debit cards.

Through these contracts, acquirers provide the necessary infrastructure and support for processing card payments, which includes data transmission, transaction approval, and settlement. They also take on the risk associated with these transactions, ensuring that the merchant receives payment for the goods or services provided.

While customer service, audits of financial institutions, and managing ATM operations are important aspects of the broader financial ecosystem, they do not fall within the primary duties of an acquirer. Acquirers specifically focus on the merchant side of payment processing, making them crucial to the overall functionality of the payment system.