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What This Article Covers

This article defines the payment and business terms you will encounter when setting up your ThryvPay™ account. Understanding these terms helps you complete the merchant application accurately so your account is approved without delays.

Payment Terms

These terms appear during ThryvPay merchant onboarding and in your ThryvPay transaction settings.

ACH Payments

ACH stands for Automated Clearing House. An ACH payment is an electronic funds transfer that allows your clients to pay you directly from their bank account, without using a credit card. ACH payments are sometimes called direct pay or electronic check. 

Annual Transaction Amount

The annual transaction amount is the estimated total dollar value of all payments you expect to process in a 12-month period. ThryvPay uses this figure during merchant onboarding to assess your account. Enter your best estimate based on your current or projected revenue. If your transaction volume changes significantly after setup, contact ThryvPay support to update your account profile.

Average Transaction Amount

The average transaction amount is the typical dollar value of a single payment from one of your clients. To calculate your average transaction amount, divide your total revenue over a period by the number of individual payments received during that same period. ThryvPay uses this figure during merchant onboarding alongside your annual transaction amount to set appropriate processing thresholds for your account.

Business Category (MCC)

A Merchant Category Code, or MCC, is a four-digit code that classifies your business by the type of goods or services you provide. Payment networks use MCC codes to categorize transactions for processing and reporting purposes. 

Convenience Fee

A convenience fee is an additional charge that a business passes on to a client when the client pays using an online or digital payment method instead of paying in person. ThryvPay allows eligible merchants to enable a convenience fee so that the cost of processing digital payments is covered by the client rather than the business.

Business Entity Terms

When you apply for a ThryvPay merchant account, you will be asked to identify your business entity type. Your business entity type tells ThryvPay and its payment processing partners how your business is legally structured. Selecting the correct entity type is required to complete your merchant application. If you are unsure which entity type applies to your business, consult your accountant or the documentation you received when you registered your business.

Sole Proprietor

A sole proprietor is an individual who owns and operates an unincorporated business alone. There is no legal separation between the business owner and the business itself. If your business is not registered as an LLC, corporation, or partnership, and you operate it on your own, you are likely a sole proprietor. Sole proprietors are automatically classified as a private business entity.

Partnership

A partnership is a business owned and operated by two or more people. Each partner contributes money, property, labor, or skills to the business, and each partner shares in the profits and losses. Partnerships are not incorporated.

LLC

A limited liability company, or LLC, is a business structure in which the owners are not personally liable for the company's debts or liabilities. An LLC provides legal separation between the business and its owners. LLCs can be owned by one person or multiple people.

Corporation

A corporation is a legally registered business entity that is recognized as separate from its owners. A corporation is typically guided by a board of directors and can enter contracts, own assets, and incur liabilities independently of the individuals who own it.

Non-Profit

A non-profit is a business entity  incorporated or unincorporated that operates for a purpose other than generating profit for its owners. Non-profits typically receive contributions from donors who do not expect a financial return. Non-profit organizations are classified as a public business entity.

Government Organization

A government organization is an entity established and recognized under the U.S. Constitution or a state constitution. Government organizations are classified as a public business entity.

Public Business vs. Private Business

A public business is one whose ownership shares can be freely traded on a stock exchange or over the counter. A private business is one whose shares are not publicly traded. When completing your ThryvPay merchant application, note that sole proprietors are automatically classified as private, and non-profit and government organizations are automatically classified as public. 

Tax Identification Terms

ThryvPay requires tax identification information to verify your business identity and comply with federal payment processing requirements.

Tax ID Number (EIN)

A Tax ID number is a unique nine-digit number used to identify your business for tax purposes. It is also called an Employer Identification Number, or EIN. The Internal Revenue Service (IRS) issues EINs to business entities. An EIN functions similarly to a Social Security number but applies to your business rather than to you personally. If you are a sole proprietor without employees, you may use your Social Security number in place of an EIN, depending on your business structure. 

Tax Identity Name

Your tax identity name is the legal name of your business exactly as it is registered with the IRS. This may be different from your trade name or the name your customers know you by. When entering your tax identity name in ThryvPay, use the name that appears on your IRS documentation to avoid verification delays.

Frequently Asked Questions

Which business entity type should I choose if I'm not sure? ThryvPay cannot advise you on which entity type to select, as this is a legal and tax matter specific to your business. Review your business registration documents or speak with your accountant to confirm your entity type before completing your ThryvPay merchant application.

What is the difference between my Tax ID number and my Tax identity name? Your Tax ID number (EIN) is the nine-digit number the IRS assigned to your business. Your Tax identity name is the legal business name registered with the IRS under that number. Both are required during ThryvPay merchant onboarding and must match your IRS records exactly.

What if I make an error in my merchant application? This article does not cover how to update or correct a submitted ThryvPay merchant application. Contact ThryvPay support for assistance with application corrections. 

Does this article cover how to process payments or manage transactions? No. This article covers definitions for terms used during ThryvPay account setup only.