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As a business owner, there are likely many account numbers and IDs you need to keep track of. A merchant ID (or MID for short) is one of them. Business owners are assigned a MID by their credit card processor when they set up a merchant account. Read on to find out exactly what is a merchant ID and how to set one up in minutes.
Merchant ID [Defined]
A merchant ID is a 15-digit code that is issued by credit card processors when you open up a merchant account. This number is an important business identifier that tells the banks and credit card processors where the money is going and is used to ensure your money is sent and received correctly. You cannot receive credit card payments without a MID.
You will find your MID on account statements, typically in the upper-right corner. Your MID is a private piece of data, similar to a bank account number, and can be used for fraudulent activity in the wrong hands.
How To Get a Merchant ID
Getting a merchant ID is a simple process. You will automatically be issued a MID number by a credit card processor when you sign up for a business account. If you’re still in the process of choosing one, check out the best credit card processors to help you find the best fit for your business’s needs.
Can I Have More Than One Merchant ID?
Some businesses choose to have multiple MIDs if they have different segments of their business. For example, if you have more than one website, it may be preferable to have multiple MIDs so you can keep track of where the payments are coming from. You can ask your payment processor to set this up.
How To Protect Your Merchant ID From Getting Revoked
Getting your MID revoked can have devastating consequences for your business as it means you will not be able to accept payments with your payment processor. You may be able to switch processing companies, but the process will take time. Remaining in good standing with your credit card processing company is essential for avoiding this possibility.
Chargebacks and fraudulent activity are two of the main ways a credit card processor may label your business high-risk, or even revoke your MID. You can protect your business and limit these possibilities by:
- Asking for a CVV when accepting credit card payments
- Asking for your customer’s address during online checkout, an added verification step
- Ensuring high-quality customer service, to minimize chances of disputed charges
What Other Types of ID Numbers Are There?
While the MID is the unique number that identifies your business, there are other merchant identification numbers you may come across:
- Gateway Identification Number (GID): A GID is a number that the payment gateway assigns and identifies your payment gateway account.
- Terminal Identification Number (TID): A TID is a specific number assigned to each physical payment processor. It can be found on your payment processing hardware.
How To Find Your Existing Merchant ID
You’ll find your MID on your merchant statements, which you will receive every month. The 15-digit code will typically appear on the top right of your statement. You also may be able to locate your MID through navigating your account on your payment processor hardware. It is a good idea to keep a record of your MID in a place that’s easy to find, in case your payment processor ever asks to verify your account.
Bottom Line
A merchant ID is an important number for your business. Your MID ensures that your payments are sent and received correctly, and communicates to the banks and payment processors who the payments are from. While you may not need to pay attention to this number on a daily basis, you’ll want to keep this number handy should you need to provide it when speaking with your payment processor. For more information and to help you get started, check out the best merchant account service providers.
Frequently Asked Questions (FAQs)
How do I find my merchant ID?
You’ll find your MID on your merchant statements, which you will receive every month. The 15-digit code will typically appear on the top right of your statement.
Can I have more than one merchant ID?
Yes. Some businesses choose to have multiple MIDs if they have different segments of their business. For example, if you have more than one website, it may be preferable to have multiple merchant IDs so you can keep track of where the payments are coming from.
Can my merchant ID be revoked?
Your merchant ID can be revoked if your business has too many chargebacks or fraudulent activity. You can protect your business and limit these possibilities by asking for credit card verification (including a CVV), and ensuring customer satisfaction to decrease the risk of disputes.
What is the difference between a merchant service provider and a payment gateway?
While they perform similar functions, a merchant account and a payment gateway are two distinct things. A merchant account refers to the bank account that facilitates transactions to your business. A payment gateway is essentially the technology that processes the card transactions for your business. You can check out our guide to the best payment gateways on the market for more information.
