Merchant Services
June 10, 2019
Aggregate vs Direct Merchant Accounts
Understand the pros and cons of aggregate vs direct merchant accounts, including risk, control, and approvals, so you choose the best setup for your business.
Aggregate Merchant Accounts: These merchant accounts are also known as Third Party Payment Aggregation or in other words, TPPA. An aggregate account is one that splits off of a direct MID (Merchant ID). Some PSP’s and merchant service providers had been known to create aggregates and use false MCC coding to trick the acquiring bank. Aggregate merchant accounts are often shared with other merchants. Sometimes, one or several merchants in the group will have high charge backs/fraud leading to a frozen account. Merchant Aggregators control their risk and can change the amount or risk they will allow at any time. These accounts can be opened with little to no review by the provider. Once your business receives a chargeback or complaint than the merchant provide with look at your business. All of these issues can lead to sudden account closure. Good merchants often lose their funds due to mistakes made by other merchants. Also, if a VISA or a Mastercard is used and discovered, merchants on the AGG can get into trouble. Unfortunately, aggregate accounts are the only option for some high-risk merchants. MID (Direct Merchant Accounts) Direct merchant accounts are known as MID’s (Merchant Identification Number). Merchant Acquiring Banks approve and assign MID’s themselves to certain businesses. These merchants will then get a special and private Merchant Identification number (MID). Unlike aggregate accounts, MID’s are set up by a PSP. Direct accounts are harder to get approved. The merchant usually requires high volumes and low charge backs in order to get a direct MID. In exchange, the approved merchant will get a custom descriptor. A direct account is a way to go as the merchant does not have to worry about other bad merchants affecting them. Unfortunately, direct MID’s can be much harder to get than aggregates in high risk. With a direct merchant account your business will be reviewed and approved. The risk of account closure can be much lower than an aggregator. With a direct merchant account, you will also receive more account specific control and reporting than merchant aggregators. At CARDZ3N, we only issue direct merchant account and are successful in approving even high-risk accounts, with a 99% approval rate. Contact us today to learn more!CARDZ3N (702) 623-3528 contact@cardz3n.com
Every merchant's processing setup is different, so the right answer depends on your industry, sales channels, average ticket size and chargeback history. CARDZ3N's payments specialists review those details with you and match your business with the right sponsor bank, gateway and risk tools, whether you sell online, in store, by invoice or on a recurring subscription.
We work with merchants across the USA, Canada, the UK and the EU, including high-risk, B2B and fast-growing businesses that traditional processors often turn away. If you would like a second opinion on your current rates, contract terms or approval options, contact our team for a free, no-obligation processing review.
CARDZ3N Inc is headquartered in Las Vegas, Nevada, and provides merchant services to businesses that traditional processors turn away. Backed by top-tier sponsor banks and processors, CARDZ3N combines institutional stability with the speed of a specialized team that understands high-risk industries. Services include high-risk account underwriting and placement, gateway solutions across the major gateway platforms, POS integrations, ACH and check processing, chargeback prevention through ChargebackZ3N, and business lending and working capital. Its AerospacePay division serves OEMs, MROs, FBOs, and repair stations with B2B and B2G payment processing. CARDZ3N serves merchants in the USA, Canada, the UK, and the EU.
9/11/2026
MATCH List (TMF) ExplainedStart protecting your revenue from chargebacks today — schedule your complimentary consultation with CARDZ3N's Canadian dispute management specialists.