MID

Merchant Identification Number (MID) is a unique numerical identifier assigned to each merchant with a merchant account to distinguish them within the electronic payment system. MIDs play a crucial role in transaction tracking, reporting, and settlement processes. Acquiring banks or payment service providers assign MIDs to merchants upon the establishment of a merchant account. This identifier is embedded in transaction data, facilitating the identification of the merchant involved in each electronic payment transaction.

During processing, networks route authorizations and settlements using MIDs to identify participating merchant terminals and accounts. This facilitates key functions like:

• Transaction routing to the right merchant account
• Attribution in reconciliation reports for accounting
• Settlement deposits into the assigned bank account
• Fees and incentive assessments based on MID
• Fraud monitoring flags for suspicious MID activities

MIDs are part of the information transmitted during the authorization and settlement phases, ensuring accurate and secure processing of transactions. Merchants should safeguard their MIDs and include them in their financial records for reconciliation purposes, helping to maintain transparency and traceability in their electronic payment activities.