Difference between a payment processor and an acquirer?

While payment processors and acquirers both play important roles in the payment ecosystem, they have different functions.

A payment processor is a third-party service provider that facilitates communication and authorization during online and offline transactions. The payment processor acts as a bridge between the merchant, the merchant's acquirer, and the card network.
This includes handling the technical aspects of the transaction, such as verifying the payment details and checking for fraud. Payment processors may also offer additional services such as recurring billing, and dispute management.

On the other hand, an acquirer is a financial institution that maintains relationships with merchants and handles the settlement of transactions. The acquirer is responsible for obtaining and managing merchant accounts, ensuring that funds are transferred from the customer's bank to the merchant's bank account, and handling chargebacks and other payment disputes.

In other words, the payment processor facilitates the authorization and processing of a transaction, while the acquirer is responsible for settling the transaction and transferring the funds to the merchant's account.

Overall, while payment processors and acquirers may work together in the payment process, they have distinct roles and responsibilities within the overall payment ecosystem.