There are so many numbers for a business to remember that adding another one might seem daunting. But when you are a merchant, one of the most important numbers that you must have is your merchant ID number.
So what is the merchant ID number, and why is it so important? The merchant ID number is an identification number that is assigned specifically to your business by a payment processor.
That may mean that if you have multiple processors, you could potentially have more than one merchant ID. But there’s so much more to a merchant ID than just what it does.
Suppose you’re a new business selling goods or services, whether in a brick-and-mortar store or an online store. You must have all the information necessary. So we have gathered together everything you need to know about your merchant ID number.
What’s a Merchant ID Number?
A MID or merchant identification number is a number that is given to businesses that sell goods and services by the bank or a payment processor. It is a must-have piece of identification as it will help the business and the bank maintain good records of transactions.
The minute you open up an account with a bank or with a processor, you are given one of these numbers. Of course, some verifications had to be done before you could get that.
The bank or processing must look at the documentation to ensure that you are the owner.
Along with this, you’ll need to provide your tax ID number and any other information necessary to prove that you are the person responsible for this business.
Is a Merchant ID the Same as an Account Number?
As we said, there are several different identification numbers that you will be given when you’re starting your business. One of those is, of course, the merchant ID, which is what we’re discussing, and then the other is an account identification.
It might sound confusing, and you may think they are the same thing, but they are not. A merchant account number is the account number that is tied to the bank account. This is basically your bank account number for your business.
Whereas merchant identification is utilized when dealing with credit card transactions. It is used to help ensure that the money is routed to the right account.
How Do You Get a Merchant Number?
Getting a merchant identification number is quite simple. Once you have opened up a merchant account with a bank or a processing company, they will then, after verification, give you a merchant ID number.
After that, you can turn to a processing provider for your credit card transactions and get a merchant account opened with them as well. They, too, will give you a merchant identification number that is attached to your business.
One word of note: if you decide to go with a different payment processor or bank at some point, you will receive a new merchant identification number. So always keep that in mind!
Where Can You Find it?
Once you’ve been given the merchant identification number, you may be wondering what happens if you forget it. Where am I able to find the merchant identification number?
We can understand you not being able to remember everything, so here are a few places where you can find your merchant identification number in case you forgot it:
- Typically your provider will send you a monthly statement. The merchant identification number is usually at the top right corner of that statement.
- Somewhere on the software on the terminal itself, where you process your credit cards, you will be able to find your merchant identification number.
- Statements abound when you run a business, and every month you’re going to get a bank statement. This could potentially be someplace where you can find your merchant identification number, although it is not necessarily always the case.
- If all spells, you can always reach out to your processing company, and they should be able to give you that number.
What is Merchant ID For?
Nowadays, the majority of transactions done in businesses are done through credit cards. That said, the credit card processing system is intricate and requires a little extra guidance. That’s where a payment processing company comes in.
This company, to ensure that the transactions are going to the right merchant account, utilizes the merchant ID to direct the funds to your bank account. That is why a merchant ID is so vital to any business.
Final Thoughts on What Is Your Merchant ID Number
A merchant identification number is a number given to you by your payment processor or bank that is tied to your actual merchant account.
This number is used particularly when processing credit cards so that the business and the payment processor can effectively move the funds from the individual’s bank account or credit card to the business without error.