What Merchants Should Know About Merchant Account Underwriting?

QuestionsCategory: Payment ProcessingWhat Merchants Should Know About Merchant Account Underwriting?
Maurya Shubham Staff asked 2 months ago
1 Answers
Prakhar Chandra Staff answered 2 months ago

If the merchant is aware about the underwriting process then there may be a possibility that the merchant may avoid some obvious mistakes. Let us look at a couple of factors which merchants must be aware about before approaching a payment service provider.

  1. Make sure your website is up and running and is clearly displaying all the products and services that we you wish to sell. Some times merchants do not complete their website and approach a payment service provider. In this case there are great chances that your application will be declined immediately once the acquiring team member does not find a fully operational website.
  2. The second reason that may be critical for many merchant is incomplete business documents. When you send the documents to the merchant account acquirer make sure that you double checked the checklist. Sending incomplete documents may show irresponsible attitude.
  3. The third reason why the account may not get approved is the industry or type of business. Banks have there own choices in terms of what industry they would be comfortable in working or not. It’s better to ask for a pre-approval before sending the documents to the bank.
  4. A bigger monthly sales volume projection may also be a reason for decline. Bigger monthly sales volume is always welcome but it should have a substantial financial standing to support it. In terms of startup merchants usually this financial backing is not available that’s the reason why you should only commit a reasonable volume.