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Answer:
The acquiring bank is the financial institution that maintains a contractual relationship with the merchant. Acting as a "middle man," the acquiring bank receives credit card transactions from the merchant or from the card acceptor, and then settles those transactions with the issuing banks.
The acquiring bank deposits funds into the merchant depository bank account, and recoups those funds from the card issuers. The merchant must pay certain fees to the acquiring bank for handling the credit card transactions.
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