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The simplest way to do this is to insert two fingers into the shackle loop and use them to force the shackle away from the top of the lock. This will put the locking pins inside the lock into the right position for a quick crack-job. Make sure you've eliminated all excess slack from the shackle. If you don't, you won't be able to knock the lock loose, no matter how many times you hit it. Don't try to grip the body of the lock itselfthat's where you'll be aiming your hammer. More specifically, you want to target the side that contains the fixed end of the shackle, as the pins are located just underneath. Pound the lock over and over again using quick, short strikes. Eventually, you'll disengage enough of the pins to "bump" the lock open. You can also use the handle of a screwdriver or another hard, blunt item if you don't happen to have a hammer handy. The best part about coaxing a padlock open with a hammer is that it should still work like nothing ever happened afterwards, so long as you don't hit it hard enough to damage any of the pins. As soon as you get done breaking your lock, give it a test run. If it fastens properly, hold onto it for future usage. If not, chuck it in the trash. This method can be useful if you need to remove your padlock without the keys but don't want to destroy it in the process.
Pull up on the shackle to create tension. Tap the side of the lock with a hammer or similar tool repeatedly. Reuse your lock when you're finished.