Typical underwriting is done in a single effort. The Merchant makes their case for receiving a Merchant account. Then the Processor performs both their due diligence and assesses risk profiles. They look at the Merchant’s business registration documents, business plans and financial projections, management structure, financials, products/services offered, transaction volume, payment methods, chargebacks history, compliance documentation and other relevant licenses/certifications. Underwriting is critical for Processors. They want to mitigate risk, limit financial loss and protect their own compliance thresholds. 

Underwriting is time consuming and expensive, and once the Merchant is underwritten, they now need to be Onboarded. Onboarding can be another long, resource heavy process of reviewing compliance requirements, risk management policies and underwriting criteria with the Merchant. Ensuring everything works optimally and the Merchant fully understands their compliance thresholds can decrease risk.