What happens after the acquirer receives payment from the issuer?

When the acquirer receives payment from the issuer, the next step is to disburse the funds to the merchant from the batch. This process is part of the broader transaction lifecycle where the acquirer plays a critical role in facilitating the transfer of funds.

Once the acquirer processes the payment after receiving approval from the issuer, they take the necessary steps to ensure that the funds are transferred to the merchant's account. This involves clearing and settling the transaction, which means confirming that the transaction has been completed and that the money can be authorized for disbursement. The acquirer collects payments from various issuers for all of the transactions that have occurred and then allocates the appropriate amounts to the respective merchants, thus allowing them to receive their funds.

This step is pivotal in ensuring that the merchant has access to the revenue from the sale and can continue their operations smoothly. It is a standard procedure in payment processing that helps maintain trust and efficiency within the payment ecosystem.