Question

Who issues the credit card and guarantees the payment to the merchant ?(a) Merchant
(b) Issuing bank
(c) Acquiring bank
(d) Customer

Answer 1

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Q:- Who issues the credit card and guarantees the payment to the merchant ?(a) Merchant
(b) Issuing bank
(c) Acquiring bank
(d) Customer

@ns:- Issuing Bank

Answer 2

Acquiring bank issues the credit card and guarantees the payment to the merchant.

Answer: Option (c)

Explanation:

For trying to locate the merchant account for the business, so of the terms have to be known like ABA routing number, Automated clearing house, Acquiring bank, and so on. An acquiring bank will provide us credit card type merchant accounts.  

This is actually a bank that has its relationship with master card and Visa card. This bank is sometimes known as clearing bank. It is responsible for clearing the transactions once they are charged to card holder.