DEFINITION of ‘Acceptor’
The acceptor is the third party who accepts responsibility for payment in a bill of exchange drawn upon it. The bill of exchange will generally have three parties: the drawor, the drawee and the acceptor.
BREAKING DOWN ‘Acceptor’
The simplest example of an acceptor is a bank who accepts a check drawn against it and assumes responsibility for payment of the check. Company XYZ has paid Electric Company ABC through a check drawn against Bank DEF. When Electric Company ABC presents the check for payment, and the bank agrees to pay the check, it becomes the “acceptor.”
