A merchant ID is a unique code which allows the merchant to accept and process online payments. Having a merchant ID is a necessary tool in online credit card processing and enables banks and other businesses to recognize your company as one that accepts a range of payment methods.
Merchant ID explained
In order to obtain a merchant ID (MID), it is important to be established as a merchant. This is done by connecting with an acquiring bank, which can also assist in obtaining your merchant ID. Additionally, an independent sales organization (ISO) can also help businesses to gain a merchant ID.
A business can obtain their merchant status from any major bank thus enabling them to proceed with online credit card transactions. From here, the bank’s role is to authorize or decline each individual payment. However, an ISO would manage the businesses accounts as well as liaise with the acquiring bank on behalf of the business.
In order to acquire an MID, the company must satisfy certain criteria as specified by the bank. This can include providing audited accounts over a certain period of time, in addition to supplying different documentation regarding their company. It is recommended to seek the help of professionals who specialize in acquiring online merchant accounts, in order to get the best terms and conditions in terms of MID.