A merchant identification number is a special code that can be used to identify the payment processing methods of a business. Payment processing companies provide merchant identification both for low-risk and high-risk clients. This identification code is important in verification of transactions.
There are quite some hindrances for high-risk clients, especially in carrying out financial transactions. As the world has become a global community, there is no need in transactions to be done face to face. We all agree that online transactions are faster, but there are always some risks involved. Some platforms are not secure, and merchants are exposed to fraudulent activities which may have negative effects on their business.
Here is some vital information on Merchant Identification Number that is helpful in navigating these new waters.
A Merchant ID is very important for a business, since it is a roadmap for your transactions. It ensures the funds are routed into your account. Moreover, it is also wise to mention that this special code has to be kept safe. In this sense, if it fell in the wrong hands, it could be very crippling for the party involved. The Merchant ID identifies a client on a payment processing platform. Having a merchant identification code makes transactions faster, easier and secured.
Obtaining a Merchant ID is not a complicated process. Payment processing companies usually grant you an ID if you provide the documents that can be used to verify the authenticity of the business. Once the business is verified, you get the ID and you are completely set up. Having one Merchant ID is enough for a business; it does not change, and it is classified as an account number.
Chargebacks are probably the most infuriating incidents that could happen to a Merchant ID holder. The consequences can be dire depending on how many chargebacks the account accumulates. Chargebacks can cause the loss of a merchant ID as well as they could put the merchant at risk of funds being withheld. Worst case scenario, the merchant’s account could be closed or the account could be deactivated. Increasingly high rate of chargebacks can cause a business to be unable to carry out cash transactions. In one of the previous posts, we have provided all the necessary information about chargebacks and how to avoid them.
As the main risk to a Merchant ID is chargebacks, this brings us to the issue of how to protect it. Successfully shielding against chargebacks is equivalent to protecting the business. If your current service provider is not helping with chargebacks, it is time to move on. It can be quite annoying trying to figure the source of the chargebacks because most of these sources are camouflaged but you can get the services of a trusted organization to identify them, root them out and keep the business steady.
PurePay payment processing services are the one stop to obtain a Merchant ID that gives assurance of timely, secured and authentic transactions and keeps the business running. We are also here for our customers to help with prevention of chargebacks and to decrease fraud.