A merchant identification number is a special code that can be used to analyze the payment processing methods of a business. Payment processing companies administer merchant ID number both for low-risk and high-risk clients. This identification code is crucial in the verification of transactions. There is quite some interruption for high-risk clients, especially in carrying out financial transactions. As the world has become a global community, there is no need for transactions to be done face to face.
How one can create a merchant ID for their business?
One can receive a merchant ID number when you start working with a merchant services provider such as 5 Star Processing. This may involve an application process that will be reviewed and approved by an underwriter. The application will require information about the business, such as the type of products and services being offered, sales volume, and ownership information. Once you get your merchant identification number, make sure not to lose it due to the chargeback. Once you get your merchant identification number, it will remain yours for as long as you work with your merchant service provider assuming you do not get flagged for excessive chargebacks. There are many ways by the benefit of which one can prevent chargeback such as –
. Geolocation verification
. Address Verification System (AVS)
. CVV Verification
. Have a designated chargeback representative working for your business?
How one can protect his/her merchant ID?
The main risk to a merchant ID number is a chargeback. This may bring us to the issue of how to protect it. Successfully shielding against a chargeback is equivalent to protecting the business. If your current service provider is not helping with a chargeback, it is time to move on. This can be quite annoying trying to figure out the source of the chargeback as most of these sources are camouflaged but you get the services of a trusted organization to analyze them, root them out and keep the business steady. 5 Star Processing services are the one-stop to obtain a merchant identification number that gives assurance of timely, secured, and authentic online transactions and keeps the business running.
Where one can find your existing merchant ID number?
Merchant ID number are not public information and cannot be search as such by an individual. So if you are not involved with the business you are trying to search, there is no merchant identification number lookup system you can take assets of. A merchant identification number is a private number and can be used for routing money, sort of like a bank account. This is a typical 15 digit number and one can find this number in many different ways such as –
. On merchant statement
One can find this number on the top right of your merchant statement from your MSP. But in case you are unable to find this number, then you need to get hold of your merchant service provider or processor and need to ask from them.
. On your merchant terminal
Sometimes MSPs or processors will put the ID on your merchant terminal. Check the sides and bottoms of the terminal for some indicator.
. Find on your bank statement
Your statement needs to have some version of your MID where the credits and debits from our processors are. These customarily start with BTOT or MTOT.
Benefits of having multiple merchant IDs
Various benefits of having multiple merchant IDs are such as –
. Risk diversification
If a merchant has many business websites that belong to various categories of business. Then it is prudent to have one MID for each website. If one website has too many chargebacks, then in the case of a single merchant id, all sites will fall under acquiescence.
. Lower price
The acquiring bank charges for its services, reliant on what level of risk the business has. Having several websites and one MID, the traffic will be set at the riskiest. In the case of many MIDs, you can pay lower tariffs, based on the characteristics of each type of business. Also, having a trading account for each brand can make tracking sales a little easier.
Having a merchant ID number is a precondition to afford any kind of online business. If you have a website and want to start accepting payments, then payment-providing company 5 Star Processing will endeavor you a free payment platform and register a merchant id. If you have any questions please do Contact Us and we will get in touch with you shortly.