Merchant Identification Number (MID)
MID is a one-of-a-kind code that is implemented by the payment processor to the trader. The code is designed to recognize the merchant interacting with the processor and additional parties. The MID can be obtained by a particular merchant only after the verification of his/her business. After this step, the trader will get the number when he/she opens a special account (merchant account) within the acquiring financial institution. The MID must be always secure in order to escape the possibility of potential threats or losses.
If the vendor wants to process transactions he/she must get the MID in the bank to be able to conduct such operations. The trader can also manage multiple MIDs if he/she wants to process transactions over the multiple merchant processors.
The ID is particular to every individual vendor position and has specific authorization requirements. Moreover, the merchant ID is in charge for informing the network who should receive the payment that’s being transferred, the way the recipient should be paid, and what kind of network must take part in the payment processing activity.