Card Acquirer vs Payments Processor: What is the Difference?

A card acquirer is a financial institution that maintains relationships with merchants and handles the settlement of transactions, while a payments processor is a third-party service provider that processes payments on behalf of the acquirer. The card acquirer is responsible for settling transactions and transferring funds to the merchant's bank account, while the payments processor handles the technical aspects of the transaction, such as verifying payment details and communicating with the customer's bank.