What is a contractual merchant number?

A contractual merchant number is a merchant number (MID) provided by the acquiring bank, but with the condition that the contract can be terminated at any time.

The contractual contracts signed between the banks and online commerces contain some logical and other abusive clauses. It can be explained by the unwillingness of the bank to deal with the negative issues that can affect its relationships with card brands and by making a commerce to sign this contract they keep a right to cancel the collaboration at the minimum risk or possibility for a fraud and money laundering activities to take place.