Merchant Identification Numbers
New to the world of payment processing? You’ve come to the right place. This article will break down everything you need to know about merchant identification numbers (MIDs) so that you will understand what they are and what they do.
Your merchant ID is a significant number that you will always need handy. You’re not alone if you feel like payment processing is a handful. There’s a lot of payment processing terminology thrown around and a lot to digest; know that your merchant ID is a number you will frequently need.
What Is A Merchant ID/ MID?
Your merchant ID/MID is the unique identification number attached to your business which tells the payment processor involved in the transaction where it should send funds. Merchant IDs are similar to an address as card networks/payment processors use this to understand where to send funds.
A merchant ID is equally as important as a bank account, and business owners should treat it the same way. You must keep your merchant ID private from your payment processing network.
How To Obtain A Merchant ID Number
When a merchant opens an account with an acquiring bank, they receive a MID. To get a merchant ID, the merchant must provide personal information and verify their business.
Merchants will typically need to provide the following:
- Principal owner ID
- Taxpayer ID
- Bank statements
- Articles of incorporation
Your payment service provider will provide your MID once the acquiring bank approves you.
Looking To Open A New MID?
If you want to expand your payment processing or start accepting payments, make Corepay your home.
We are confident we can help grow your business to the next level while minimizing your chargeback ratio.
At Corepay, we specialize in high-risk merchant accounts and will provide you with your merchant ID and merchant account that you have control over, allowing you to maximize approvals.
How Does A Merchant ID Work?
If you’ve wondered how your funds are transferred from your bank to your merchant account and how online transactions are made, the answer links back to your merchant ID.
The card networks are linked internally through a unique identification code and a payment gateway.
Whether you’re a brick-and-mortar business or you are strictly e-commerce, you will have a merchant ID unique to your company.
Never Share Your Merchant ID
Your merchant ID is associated with your business bank accounts. Beware of anyone trying to acquire your merchant ID number from you. There are a ton of fraudsters who can use this to make illegal transactions that can put your business at risk.
When you change credit card processors, you will be given a new MID or if you choose to add another MID.
How Do You Find Your Merchant ID Number?
The public cannot obtain merchant IDs. To find your merchant ID, you can do the following:
Note* Merchant IDs are typically 15 digits.
- Merchant Account Statement – Check the top right corner of your merchant statement from your payment processor
- Bank Account – You should see an abbreviated form of your merchant ID from deposits and withdrawals on your statement
- Emailing your merchant service provider
- On your terminal – You can usually find your merchant ID on your terminal, depending on who your MSP is
To recap, merchant IDs are essential for business owners. Never share your MID with unreputable sources. Store your MID in a safe place that is accessible, as you will need to refer to it.
We appreciate you following Corepay’s blog. Let’s collaborate, send us your article suggestions, questions, and/or feedback to: [email protected]