Your Merchant Identification Number (MID) is unique to your business and informs the credit card payment processing systems where to deposit your funds. MIDs are issued as part of the process of establishing a merchant account with a bank.
The card payment process includes three stages: authorization, settlement and funding. As transaction information is passed throughout the credit card network, your MID identifies you initially as the party requesting payment and then as the account to be funded. It’s like your digital address and is key to getting you paid.
Connecting a business checking account to a merchant account provides a robust, customizable option that’s preferable to a payment service provider for most established companies. Merchant account advantages include assistance with PCI compliance, fraud protection, higher limits on transaction size and analytics tools to help you make decisions.