What Is a Merchant Identification Number?

Oct 31, 2017

The whole procedure of processing an online or other transaction involves a number of variables to ensure safe and secure payments. These measures are implemented to ascertain that all payments are channeled to the right accounts and through the correct network. For that reason, every merchant must possess specific identification data to enable safe and timely processing of sensitive confidential information.

That explains why every online merchant is allocated a merchant identification number (MID) for their credit card processing activities. Through these numbers, computer networks can identify the merchant behind every processed transaction. And since, millions of companies are processing payments worldwide, an MID is a must-have as this is the only way to augment merchant identification across networks and have all transactions channeled through the appropriate routes.

Is It The Same As My Merchant Account ID?

It’s easy to confuse your merchant identification number for your merchant account ID as these names are almost similar. But be aware; they completely different.

Merchant account IDs are assigned to merchants who run different types of transaction or businesses under one payment gateway.  For instance, if your company has several brands then each business will be given a specific merchant account ID. On the other hand, the merchant identification number will remain the same for the whole company.

What Else Do I Need To Know?

Your merchant account is not good to go with just the merchant ID number; you’ll also need a terminal identification number (TID) and gateway identification number (GID).

TIDs identify the facility responsible for the completing each transaction. (Each merchant often holds more than one TID)

GIDs refer to the specific networks merchant use to process their orders.

Using these three bits of info, the network can tell who is being paid, through which medium they are receiving payments, and decide the network on which to process their payments.

What Now?

Every business whether physical or online, needs to be able to process credit card payments. However, you must also make sure you consumers’ confidential data are safe. Every time you process a transaction, your merchant identification number ensures these payments reach the intended destination.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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