If you operate a business and accept credit cards, you have a merchant ID. But what is a merchant ID? What do you need to know about your personal merchant ID?
Merchant accounts are unique to each individual merchant. No matter where you go or choose to open up an account, you will be assigned a merchant ID.
A merchant ID allows banks and credit card institutions to identify your business when transactions and payments come through. It’s a way of telling where the payments are coming from and where they are going to.
Merchant status will be issued by one of two sources: a bank or an ISO (independent sales organization).
A bank will assign you a merchant ID, allow you to accept credit card payments within your business, and authorize or decline each individual transaction as it comes through. 
An ISO will assign you a merchant ID, manage your account and collect payments on your behalf, put money directly into your account, all while working hand in hand with the bank.
There are always costs involved depending on the type of business you are setting up. Monthly or annual fees, terminal fees, dedicated phone lines, minimum balance fees, and percentages of each transaction are all common through both banks and ISOs.
In order to obtain a merchant ID, you must first prove you are trustworthy. You may have to show a variety of documents from your business operations, including accounting and financial records, and demonstrate a successful track record.
Once you are approved, you will need to determine the right type of merchant account for you. Do you rely on sales in a retail location? Do you sell online through your website? Do you use mobile technology? Or a combination of all?
The more needs you have, the more hoops you will jump through to obtain a merchant account through a bank. Which is why over 80 percent of all accounts are set up through an ISO. ISOs usually work in specialty areas or niches, finding the most viable options for their clients and ensuring they get the best rates on your behalf.
Whether you are looking to set up a new account, or are wondering if you are getting the best rates, maybe its time to find out what’s new. You may end up saving money and improving your customer service along the way.