Merchant ID & Live ID

Tanisha Sabherwal
Tanisha Sabherwal
July 20, 2021

Since the Payments Aggregator is the binding agent between the entities, it used MerchantID (MID) and LiveID (LID) to map multiple payment instruments to a single distinguishing ID.

Merchant ID is issued by the banks & wallets, wherein the aggregator collects the documents and submit it in specific formats. The policies for issuing such MIDs are dependant on:

  • Guidelines set by card schemes such as Visa, MasterCard, NPCI
  • Policies/regulations by RBI and the Government
  • Bank’s internal compliance or risk policies

For eg: SBI doesn't provide MID for wallet loading, HDFC does not issue for rummy merchants, none of the banks issue MID for crypto exchanges.

Live ID is a unique identifier issued by the aggregator to the merchant. Each LID is configured to mostly one (separate procedure for more than one) acquiring bank account (settlement account) and multiple acquiring accounts can be configured to one LID.

Aggregator can issue multiple LIDs to the merchant with separate charges, see model and configuration but in that case there will be 'n' dashboards to refer to and card vault will be different.

Example: A merchant has to Live Ids (A1234 and B6789) then saved card at A1234 will not show in B6789 unless both vaults are merged.

Merchant ID and Live ID mapping

Merchant ID and Live ID mapping

Every payment aggregator has an industry specific or Merchant Category Code (MCC) specific Master MID from the banks**.**

  • Master MID are procured at standard pricing so it is difficult for aggregators to maintain the pricing. Eg: Credit card rate of Master MID is 1.85% while for generic MID is 1.80%. To solve this, aggregators can acquire MIDs at different rates from the banks to balance out the overall pricing.
  • Banks can onboard any merchant with a Master MID but it is not advisable to onboard members which are not approved by the partner bank.
  • Except the big 9-10 banks, all aggregators can onboard merchants without prior approval (carpet approval) through their Master MID since they are not that big in acquiring business.
  • In the payment statement, if the merchant is on Master MID or transaction is done on of the carpet approval banks, then the aggregator's name is displayed in the statement else the merchant's.

Resources: AuthNCapture