A merchant identification number is a unique number assigned to a merchant account to identify it with activities. The number works alongside a terminal identification number and a gateway identification number.
The merchant identification number is usually generated by a processor. The number can be easily confused with the numbers of the systems used in completing transactions and other activities. A company can have several merchant identification numbers that recognize each profit center as a different entity. The use of different merchant identification numbers in a company helps to make the accounting process efficient and improves the reporting process.