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What is a Merchant Account, Processor and Merchant ID?


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10/14/2024 17:12 PM

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Merchant Accounts (Merchant Bank Accounts)

A merchant account is a specialized bank account where proceeds from your sales are deposited. It allows you to accept payment cards and digital wallets from websites, POS (Point of Sale) terminals, and mobile devices.

Understanding Acquirers

An Acquirer (also known as an Acquiring Bank) is a financial institution that processes credit or debit card payments on behalf of a merchant. The acquirer provides the merchant with a merchant account and is responsible for settling card transactions and depositing the funds into the merchant's account.

Understanding Processor

A Processor is a company that handles the data transmission between the merchant, the acquirer, and the card networks. The processor manages the authorization, clearing, and settlement of transactions. They ensure that payment information is securely transmitted and that funds are correctly transferred. You can typically identify who your processor through the Value-Added Reseller (VAR) sheet. To obtain your VAR sheet, contact your Merchant Service Provider (MSP) for your Merchant Account. For more information, see: What is and who is a Merchant Service Provider (MSP)?

You can identify the processor connected to your Authorize.net Gateway Account using the following steps:

  1. Sign in to the Merchant Interface.
  2. Select Account from the main toolbar.
  3. Choose Merchant Profile from the menu on the left.
  4. Under the Payment Methods section, the Processor name will be listed.

Merchant ID (MID)

A Merchant ID (MID), also known as a merchant account number, service entitlement number, or service establishment number, is associated with your merchant account. Contact your Merchant Service Provider for this information, as they should have it on record.
  • If you receive paper statements from your MSP, the MID is usually listed on the statement.
  • If you have your Value-Added Reseller (VAR) sheet from your MSP.
  • If not, ask the bank that receives your deposits to trace a deposit back to your MSP for the company's contact details.
Note: American Express and Discover often handle their own funding and provide separate MIDs. Your Merchant Service Provider should have these MIDs if they handle these card types for you.
 

 



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