Aggregate vs Direct Merchant Accounts

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 Card Z3N, 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!


Card Z3N, LLC.

702-623-3528

contact@cardz3n.com