Merchant ID Numbers: The Basics
Suppose you’re a business owner who wants to start processing payments online– then you’ll need to obtain a merchant identification number or MID number. This unique code is assigned to merchants by their acquiring bank and is used for identifying the merchant in payment processing networks. It’s also mandatory to route transactions through the appropriate channels and ensure that money reaches the right destination. This article will provide an overview of MID numbers, why payment processors use merchant numbers, and how they work. Stay tuned!
What is a Merchant Number?
Merchant id numbers are provided for all payment processing merchants with an account and are vital for processing payments. Having a merchant number helps third-party processors keep track of all the merchants’ transactions and allows for differentiating between them. A merchant account holder can find their MID on their monthly statements or online dashboard explicitly identified as the merchant id number or MID on the given page. This number will be utilized every time funds are moved into your merchant account, signaling that the MID belongs to the merchant requesting payment. Merchant account numbers or MIDs should not be confused with merchant category codes or MCCs, as they maintain different functionality.
What is the difference between Merchant Numbers and Merchant Category Codes?
MCC codes are used to classify businesses by the type of goods or services they provide. On the other hand, merchant id numbers are unique codes assigned to a merchant by their acquiring bank. MIDs are used for identifying merchants in payment processing networks, while MCCs are set for tax reporting and accounting. When a company signs up for a merchant account, they are assigned one category code based on the industry type– e.g. adult, travel agencies, and so on. Both MCC codes and MIDs are essential for ensuring that transactions are processed correctly.
How to get a Merchant Number
Now that you know the basics of merchant ID numbers, you might be wondering how to get one for your business. The process is relatively simple. First, you’ll need to find an acquiring bank or payment processor that offers merchant services. Once you’ve found a provider that meets your needs, you’ll need to complete an application and provide some basic information about your business. After your application is approved, you’ll be assigned a merchant ID number. That’s all there is to it!
Where to go for Merchant Services
If you want to start processing payments online, you’ll need to obtain a merchant number or MID. Seamless Chex will provide you with top-tier merchant services and the information you need to succeed. Seamless Chex carries a suite of products that enhance the online shopping experience, providing payment processing-related features to all of your goods and services. Contact a Seamless Chex expert or visit our website today! Become a seamless merchant and get started now.