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Merchant Underwriting: What It Is, How It Works, and Why It’s Important

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The merchant underwriting process is a critical step that payment processors and financial institutions use to assess the risk associated with onboarding new businesses. Learn More What is Merchant Account Underwriting? What is the Purpose of Merchant Underwriting?

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The Ultimate Guide to Ecommerce Payment Solutions

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Businesses using self-hosted gateways must handle data security measures and comply with industry standards like PCI DSS. This means the sub-merchants dont have to go through the lengthy and arduous underwriting process. The details are then encrypted and transmitted to a third-party payment gateway for authorization.

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Choosing the Right Payment Gateway for Your Specific Business Needs

My Payment Savvy

This tokenization keeps the sensitive card information off your servers, reducing the risk of a data breach and easing PCI DSS compliance. The application process typically starts with basic information collection, followed by underwriting review. Providers assess business legitimacy and financial stability before approval.

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What Are Merchant Category Codes (MCCs)?

EBizCharge

Tax reporting and compliance: MCCs aid in tax reporting and compliance with regulatory bodies like Payment Card Industry Data Security Standards (PCI DSS) and Anti-Money Laundering (AML). For example, if a credit card is suddenly used at a pawn shop after being consistently used at beauty shops, this can indicate fraud.

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How Does Merchant Underwriting Work?

EBizCharge

Merchant underwriting is an essential component of the payment processing industry, ensuring the safety and security of electronic payments. This article will explore the mechanics of merchant underwriting, from the essential steps involved in the process to the factors influencing it. What is merchant underwriting?

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What are Merchant Accounts and How Do They Work?

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Setting up a merchant account involves choosing the right merchant account provider for your needs, identifying your type of business, submitting an application, and undergoing an underwriting process to assess risk. PCI compliance. Request Quote What Is a Merchant Account? The payment methods you want to accept. Scalability.

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Payment Facilitator vs Payment Gateway: Key Differences and Similarities

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In a payment facilitator model, the PayFac benefits the merchants by handling payments, streamlining onboarding paperwork, reducing the workload on smaller merchants, and underwriting transactions to allow a faster and more seamless experience for the merchants’ customers.