Which entity sends payment transaction data through the payment network?

The acquirer is the financial institution or bank that partners with the merchant to process payment transactions. When a customer makes a purchase with a credit or debit card, the acquirer is responsible for receiving the transaction data from the merchant, which includes the payment details. The acquirer then forwards this data through the payment network to the appropriate issuer (the bank that issued the card being used for the transaction) for approval.

In this process, the acquirer acts as an intermediary, facilitating communication and transactions between the merchant and the issuer. This is essential for the overall function of the payment system, ensuring that authorization requests are properly handled and processed. The acquirer also plays a key role in managing the risks associated with the transactions, ensuring compliance with security standards and protocols that are critical to validating and protecting card transactions.