The Underwriting Process

The Underwriting Process

In order for you to start business operations and process credit card sales, your business needs to get approved for a merchant account. The underwriting process to be approved for a merchant account can be very overwhelming and frustrating especially for higher risk merchants or high volume businesses, which is why at Maverick we make it as easy and quick as possible.

With our network of domestic and international banking partners and a suite of added-value services, Maverick is your one-stop shop for all of your business processing needs.

Just because you have a business entity and business bank account setup, it doesn’t mean you will automatically be approved for a merchant account. When a business is approved for a merchant account, there is a great deal of risk assumed by the processor and acquiring bank if your business accrues losses you can’t remedy with your own financial resources, such as chargebacks and/or fraud.

underwriting process

Merchant accounts are essentially a line of credit so processors and banks conduct a review process (underwriting) to see what the appropriate level of risk is for your business and see if the merchant is eligible for the account’s parameters such as the monthly volume, average and high transaction amount, products being sold, and so on.

The difference between your requested sales volume and approved sales volume comes down to underwriting, and there are several variables taken into consideration during this underwriting process. The major variables are listed below:

  • Industry or Products/Services Sold
  • Length of Time in Business
  • Processing History  (if any)
  • Financial Stability (financials for the business and/or signer)
  • Personal Credit of Business Owners
  • Billing Model (recurring/continuity vs. straight-sale)
  • Transaction Type (face-to-face vs. card-not-present)

Every bank and processor is different in their appetite for the types of accounts they will approve, so one of the advantages of choosing Maverick is that we work with numerous acquiring banks and know the underwriting policy of each and their acceptable merchant list, as well as the requirements in order to get you approved so you don’t have to spend countless hours filling out applications and talking to different companies.

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