MERCHANT ACCOUNT ACTIVATION SYSTEM

A merchant account activation system that includes an Internet server that works in conjunction with a master account file operating on a mainframe computer and an expert computer system that is used to configure point-of-sale terminals. Many of the steps of the activation procedure are performed by a merchant activation routine running on the Internet server, which allows a merchant to apply for a merchant account during an on-line session conducted with the Internet server. The merchant activation routine obtains application information from the applicant during an on-line session, conducts a credit check and “scores” the application as a credit risk during the on-line session. If the application is approved, the merchant activation routine displays a fee schedule and associated terms and conditions to the applicant for acceptance. In response to merchant acceptance of the terms and conditions of a merchant account during an on-line session, the merchant activation routine or an associated computer operated by the acquirer generates identification information associated with the merchant account and the point-of-sale terminal, such as a Merchant Identification Number (MID) and a Termination Identification Number (TID).