Which transactions does the acquiring bank handle?

The correct choice highlights that the acquiring bank is responsible for managing all types of card transactions, which include credit cards, debit cards, and prepaid cards. The acquiring bank acts as an intermediary that facilitates the transaction between the merchant and the payment networks. This broad scope of handling various card types allows merchants to accept a wide range of payment methods, increasing their potential customer base.

Understanding the role of the acquiring bank is essential in the electronic payments ecosystem, as it ensures the smooth processing of financial transactions across different platforms, ultimately enabling retailers and consumers to engage in efficient and effective payment experiences. By managing various card types, the acquiring bank plays a crucial role in enhancing transaction convenience and security.