In an online transaction, which of the following is the correct set of participants?

The correct set of participants in an online transaction includes the acquirer, issuing bank, cardholder, and merchant. Understanding the roles of each participant is essential for grasping how online payments function.

The merchant is the business that sells products or services to the customer. The cardholder is the individual who makes a purchase using a credit or debit card. The issuing bank, which is associated with the cardholder, provides the credit or debit card and is responsible for funding the customer's purchase. The acquirer is the bank or financial institution that partners with the merchant to process the payments made to them.

This combination captures the essential flow of funds and information during a transaction, wherein the customer initiates a purchase through the merchant, the issuing bank authorizes the transaction, and the acquirer settles the payment with the merchant.

The other options present various combinations of participants that do not accurately reflect the standard roles and relationships within the payment processing ecosystem. For instance, mentioning a transactional account or shipper does not align with the core entities involved in the transaction process itself.