Merchant Onboarding Made Easy: Tips to Get Set Up Fast

Merchant Onboarding Made Easy: Tips to Get Set Up Fast

Do you know what the merchant onboarding process entails for starting payment processing with a new SaaS vendor?

Understanding how to set up a merchant account is essential to saving time, avoiding frustration, and ensuring a smooth transition to accepting payments.

Here are the basic considerations for companies setting up a new merchant account.

Merchant Onboarding Paperwork

The merchant onboarding process can move quickly if your business is in good standing and all required documentation is ready. Setting up a new merchant account starts with submitting accurate and complete information to your merchant account processor.

Here is the essential paperwork you’ll need during the merchant onboarding process to set up a merchant account successfully.

SaaS Service Agreements or Sales Orders

Most software companies require you to read and sign a contract or agreement before you can begin using their services. The faster your organization is at returning these documents, the faster your underwriting and merchant onboarding process can get underway.

Merchant Service Provider Applications and Documents

To understand if your organization is a good fit for the bank, they will want a clear picture of your business financials. They may ask a lot of questions, especially if your industry is considered high-risk.

If your business requires a merchant account for credit card processing or an ACH merchant account, prepare to complete detailed documentation. This includes submitting financial statements, merchant applications, identity verification, and other compliance documents to meet acquiring bank requirements.

Most banks also look for other items, such as merchant statements or tax EINs. Work with your SaaS vendor’s onboarding team and try to provide everything they ask for as quickly as you can get it.

This helps show underwriters a complete representation of your business. It also reduces the amount of correspondence required for the acquiring bank to make its decision.

“If there are some potential issues, let’s address them and be upfront about it and we can discuss. Waiting to see if we will find the red flags is not a good way to enter into the relationship.”
Mike Campbell

Chief Credit and Risk Officer
Newtek Merchant Services

Merchant Service Accounts Approval Time Frames

Once your documents are submitted, the acquiring bank performs due diligence to assess your business’s risk and compliance with merchant service account requirements.

When all required items are provided, your company may get a decision in as little as two business days. The time frame may be longer if the underwriting bank runs into red flags like missing documentation, an incomplete application, or inconsistent information between online presence and application.

Other red flags include:

  • A consistently high or increasing chargeback ratio
  • Frequently changing or attempting to change processors
  • Collectors of payday loans
  • Collectors of purchased debt
  • Other merchant accounts on a bank statement
  • Financial instability, or main source of revenue coming from another company
  • Sharing an account with another merchant

Additional Documentation

If there is any question or confusion from the underwriter, additional documents may be requested before they make their decision. If you hear from the underwriting team that they need more materials, produce the items promptly to avoid further delays.
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General Checklist of Underwriting Documents for a New Merchant Account

Completed and signed merchant application

Voided check or bank letter

Corporate and financial statements

Recent transaction volumes or merchant account history

A Conversation with the Business Owner or Operator

Occasionally, underwriters may need to verify information directly with the business owner or operator at your company. This is nothing to be nervous about.

They are merely trying to understand your organization and assess the risks involved in approving your merchant account. The appropriate staff members should be available to answer questions at their earliest convenience and with full transparency.

Additional Merchant Account Considerations

Those just learning how to set up a merchant account may think that a single application is all that’s required. However, the risk your company poses to a bank can affect their choice in approving or denying your account.

Stronger Financials

Stronger financial statements make the underwriting decision easier. If your business is in a good place financially, that gives you an advantage in getting a merchant account approved.

If your financials aren’t great, however, you may still qualify. Speak to your SaaS payment vendor’s onboarding team about your situation and they can give you further insight.

High Risk Industries

For businesses in high-risk industries, the merchant onboarding process typically requires additional documentation, such as background checks and enhanced compliance requirements.

Don’t be discouraged from trying to obtain an account but make sure you speak to the onboarding team first, so you are prepared to provide all the documents and information required.

After the Merchant Application is Approved

Once your merchant application is approved, provide contact details for key staff who will manage daily reports and communications from your merchant account processor.

This ensures a smooth onboarding experience and access to essential account information.

PDCflow simplifies the merchant onboarding process by matching your business with the best merchant service provider for your unique needs.

Whether you need a small business merchant account, solutions for high-risk industries, or would like to set up a zero cost merchant account our team ensures your merchant accounts are set up quickly and securely.

PDCflow is an esignature, digital communication and payment platform that empowers businesses to collect esignatures, securely manage document workflows, and streamline payments.

Combine signature capture with payment processing to send contracts, manage payments, and simplify sending compliance documents. The flexible templates make it easier for companies to reduce follow-up time and boost cash flow.

With an omni-channel approach, robust security features, and customizable workflows, PDCflow supports all types of small businesses to enhance customer experiences and operational efficiency.

For more information on how PDCflow can help your business, book a demo today.

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- ABOUT THE AUTHOR -
Hannah Huerta - PDCflow Marketing Specialist
Hannah Huerta, Marketing Specialist

Hannah Huerta is a Marketing Specialist at PDCflow. She creates content for the accounts receivable and payment industry.

LinkedIn - Hannah Huerta

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