Merchant account online

How acquirers decide

An acquirer carries the financial risk of your card transactions. If a customer disputes a charge and you cannot refund, the acquirer may have to cover it. That is why underwriting focuses on how likely disputes are and how much money is at stake at any one time.

Underwriters look at what you sell, how and when you deliver it, your refund terms, your markets and your expected volumes. They also check that the company, its owners and its website tell the same story.

Some business types are classed as higher risk by card schemes and acquirers. That does not always mean a refusal. It can mean a rolling reserve, a longer payout delay or a smaller processing limit at the start.

• Product and delivery model: physical goods, digital goods, services or subscriptions
• Refund and cancellation terms shown clearly before checkout
• Customer markets and currencies
• Average order value and monthly volume
• Past chargeback ratio, if you have processed before

What your website needs before you apply

The website is a common cause of delay. Underwriters open your site and look for the same basic items every time. Fixing them before you apply saves a round of questions.

Your site should show the legal company name, a working contact method, clear prices in the currency you charge, and terms that match how you actually deliver. Subscription businesses should state renewal terms and how to cancel.

• Legal entity name and registered address
• Terms and conditions, refund and cancellation policy, privacy notice
• Product pages with prices, currency and delivery times
• Secure checkout with no card data stored on your own servers unless you are certified to do so

Card data security

The PCI Data Security Standard applies to every business that stores, processes or transmits cardholder data. Acquirers decide how you must show compliance, which often depends on your volume.

Most small merchants reduce the burden by using a hosted checkout or a gateway that tokenises card details, so card numbers never touch their servers. We note which option each provider on your shortlist supports.

Gateway, payment facilitator or direct acquirer

A payment facilitator groups many merchants under one master account. Onboarding is quick, but accounts can be reviewed and frozen with little notice if your activity looks unusual.

A direct merchant account with an acquirer takes longer to open and asks for more documents. In return it usually gives more stable terms once approved. Growing businesses often use both: a facilitator to start and a direct account as volumes rise.

After approval: keeping the account healthy

Approval is based on the business you described. If you add new product lines, sell into new countries or see volumes jump, tell the provider first. Sudden changes that do not match the application are a common reason for payouts being held.

Watch your dispute rate. Card schemes run monitoring programmes for merchants with high chargeback levels, and acquirers act well before those levels are reached. Clear billing descriptors, fast refunds and good delivery tracking keep disputes down.

Keep your documents current as well. Providers review merchants periodically and may ask for updated company records, bank statements or proof of fulfilment.

• Tell the provider before changing products, markets or volumes
• Use a billing descriptor customers recognise
• Refund quickly when a customer asks, before they dispute