VAR Sheet, Onboarding Sheet, & MID Credential Form: Explained

A VAR sheet is a merchant account configuration document that provides the necessary details to set up a payment gateway, POS system, or terminal with your payment processor. It ensures that transactions are routed correctly and processed without errors.

Typically, this document is provided by the payment processor or merchant service provider when setting up a new payment gateway, POS system, or switching providers.

Each business in the supply chain reclaims the VAT they paid, ensuring they only pay tax on the value they add. However, the final consumer cannot reclaim VAT, making them the one who ultimately bears the tax burden.

VAR sheets contain essential merchant account details that allow a payment gateway or processor to recognize and authorize transactions. Here’s how it works:

• You request a VAR sheet from your payment processor or solution provider.
• The VAR sheet is submitted to the payment gateway or POS provider.
• The gateway or terminal is configured to match your account details.
• Once set up, transactions are processed smoothly and securely, ensuring funds reach the correct business account.

While formats may vary, a typical VAR sheet includes:

• Merchant Identification Number (MID): A unique number assigned to your merchant account, used to track transactions and identify the business within the payment network.
• Processor Information: Details about the payment processor responsible for handling transactions and settling funds. This usually includes phone numbers for customer service, technical support, etc.
• Business Details: Your legal business name, address, and contact information, ensuring proper account identification.
• Merchant Category Code (MCC): A four-digit classification code assigned by card networks that identifies your industry or type of products/services offered.
• Security and Encryption Settings: Configuration details that help protect transaction data and ensure compliance with security standards like PCI DSS.

Understanding whether you need a VAR sheet can help you streamline your payment processing setup and avoid unnecessary steps.

Common Scenarios Where VAR Sheets Are Required

Not all merchants need a VAR sheet, but it is required in specific situations, including:

• Integrating a Payment Gateway: If you’re using a third-party payment gateway for online sales, a VAR sheet connects your merchant account to ensure correct transaction routing.
• Setting Up a POS System or Card Terminal: If you accept in-person payments, a VAR sheet configures your POS system or credit card reader to communicate with your payment processor.
• Switching Payment Gateway: If you’re moving to a new payment gateway, they will require a VAR sheet to transfer your account details and maintain seamless payment acceptance.
• Expanding to New Regions: If you’re selling internationally, some payment processors or acquirers may request a VAR sheet to meet regional compliance requirements.

When a VAR Sheet Is Not Needed

There are situations where a VAR sheet is not usually required, including:

• Using an All-in-One Payment Solution: If your merchant account, payment gateway, and processor are bundled together, everything is pre-configured, eliminating the need for a VAR sheet.
• Fully Integrated POS Systems: Some modern point-of-sale systems come with built-in payment processing, meaning no additional configuration is required.
• Ecommerce Platforms with Native Payment Solutions: If you’re using a platform like Shopify Payments or similar services, the payment infrastructure is already set up.

Here’s how to obtain a VAR sheet and put it to good use.

How to Request a VAR Sheet

If your business requires a VAR sheet, follow these steps:

• Contact your payment processor or solution provider. Request the VAR sheet specific to your merchant account.
• Provide necessary business details. Be prepared with your business name, MID, and banking details.
• Verify the information. Ensure all details on the VAR sheet are correct before submitting it to a payment gateway or POS provider.

How to Implement a VAR Sheet in Your Payment System

Once you obtain your VAR sheet, it must be properly configured in your payment system. Here’s how it is used in different scenarios:

• For Online Payments: Submit the VAR sheet to your payment gateway provider to ensure smooth transaction processing.
• For In-Person Payments: Provide the VAR sheet to your terminal provider or use it to program your POS devices.
• For Processor Transfers: If you’re switching providers, the new processor will use the VAR sheet to configure your account and prevent service disruptions.

Troubleshooting Common Issues with VAR Sheets

If issues arise during the setup process, consider these common problems:

• Incorrect Merchant ID or Banking Details: Transactions may fail due to mismatched account details. Double-check your VAR sheet.
• Incompatible Terminal or Gateway Configuration: Ensure your processor supports your chosen payment gateway or POS system.
• Processing Delays: Follow up with your payment processor if activation is taking longer than expected.

When handling a VAR sheet, businesses must prioritize security and compliance:

• Protect sensitive business information when sharing the VAR sheet.
• Ensure PCI DSS compliance when integrating a new payment system.
• Use encrypted communication methods to prevent unauthorized access to account details.

Maintaining secure payment processing practices helps protect both your business and your customers from fraud and data breaches.

A VAR sheet is a key tool for businesses integrating new payment systems, ensuring that all components work together to process transactions securely and efficiently. Whether you’re upgrading, switching providers, or expanding internationally, knowing when and how to use a VAR sheet can help prevent costly disruptions.