Merchant Identifier

The term “merchant identifier” is sometimes used to refer to a merchant ID, or merchant identification number. However, “Merchant Identifier” is also the name of an application programming interface (API) created by Mastercard.

The API provides rich information about a given merchant. It’s used by both issuers and acquirers to enable faster performance and more reliability by providing detailed merchant information to cardholders.

Let’s say a cardholder finds a transaction on their statement that they can’t recognize, and calls their issuer to inquire about the transaction. The issuer sends the billing descriptor attached to the transaction in question to Merchant Identifier. The API then looks up the merchant’s name and address, and sends the information back to the bank. Armed with these details, the cardholder should be able to identify the merchant in question.

One of the primary reasons why cardholders file disputes is that they can’t recognize the transaction based on the merchant’s billing descriptor. Merchant Identifier makes it easier to cardholders to identify the source of transactions, thereby making them less likely to file disputes.