When a consumer uses a credit card or debit card to make a purchase, the payment processor will provide your business with an exclusive identification number called a merchant transaction ID, commonly referred to as a MID, which is used to identify your merchant bank account. Consider it the address of your business. Without a merchant transaction ID, none of the networks involved can transmit your money anywhere.

When a merchant communicates with their processor and other parties, the MID (merchant ID) can assist in identifying them. The funds would have no destination if a MID was not connected to a transaction. The money could not be sent to you properly by the bank.

For example, Merchant service providers will categorize firms based on their type, with classifications including:

• Ecommerce
• Food & Beverage
• Retail
• Hotel
• Airline
• Mail Order