Which entity determines a merchant's transaction volume?

The acquirer is the entity responsible for determining a merchant's transaction volume. This is because the acquirer, also known as the acquiring bank, partners with the merchant to facilitate credit card transactions and is deeply involved in processing payments. They track the volume of transactions that the merchant processes in their merchant account. This involves monitoring the number of transactions, the total sales amount, and other related data for risk assessment, reporting, and ensuring compliance with payment industry standards.

Payment processors typically handle the technical aspects of payment transactions but do not have direct responsibility for determining transaction volume. Similarly, while merchants can track their own transaction volume through their systems, it is ultimately the acquirer who oversees the official reporting and account management for the transactions they process on behalf of the merchant. Payment brands, on the other hand, such as Visa or MasterCard, set the rules and standards for transactions but do not directly measure merchant transaction volumes.