A Merchant Identification Number, or MID, is a nine-digit number that identifies the business accepting credit cards. The MID must be affixed to all machine-generated receipts and it must match the number printed on the face of the card used by the customer.
When does my business need a Merchant Identification Number?Every retailer who uses a credit card machine to process transactions should have an MID. But not all companies need to apply for one. If you own or lease the equipment used for credit card processing, like ATMs and point-of-sale (POS) terminals at your retail location, you're considered the "merchant of record" by the major credit card companies and do not need to apply for an MID. Stores with third-party processing contracts also don't typically need to bother with obtaining a Merchant Identification Number.
What if I'm using my personal credit card at my business?It is worth noting that many small business owners like you use their own personal cards as opposed to dedicated credit card processing equipment. If this is the case, you'll need to obtain an MID from your credit card company (Visa, Mastercard or Discover) and not another business like a bank. This is why it's imperative that you know who actually owns and leases the credit card machines at your business – because if they're yours then you don't need to apply for an MID, but if they're your bank's then you do need to apply.
What information does a Merchant Identification Number request typically entail?When applying for a Merchant Identification Number with the major credit card companies (Visa and Mastercard, Discover is different), you'll most likely be asked for: your business name; business address; your tax ID number (EIN); your business phone number; and what type of business you operate (most likely retail). You may also be asked to provide documentation like articles of incorporation or a completed taxpayer identification form.
Which credit card companies require an MID?Visa, Mastercard, Discover and American Express all require an MID before you can process credit card transactions, but the requirements and application processes differ depending on who your provider is.
American Express: American Express requires you to fill out a Merchant Application Form and submit it along with a $15 processing fee via postal mail or fax. Once approved, your company will receive your MID by mail after 10-14 business days.
Discover: Discover requires that you fill out a Contact Application Form and submit it along with a $15 processing fee either by postal mail or fax. Once your application is approved, the MID will be issued via post within 7-10 business days. It can take up to 14 business days for applications submitted by fax.
Mastercard: Mastercard requires you to fill out a Merchant Application Form and submit it either through the mail or fax. Once approved, your company will receive your MID within 5-7 business days of application submission. A processing fee of $0 is required for those who apply by fax or mail. However, those who apply online are charged a $15 processing fee.
Visa: Visa requires you to fill out a Retailer Application Form and submit it either by postal mail or fax. Once approved, your company will receive your MID within 5-7 business days after application submission. Again, a processing fee is required for those who apply by fax or mail ($15 for either) but are waived for those who apply online.
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