A merchant account is your own agreement with an acquirer to accept card payments. Unlike aggregators, where you operate under the provider's umbrella, here the acquirer assesses your company directly. That process is underwriting, and it decides your rate, limits, reserve and approval itself.
In short: the acquirer estimates how much risk you bring: industry, sales model, countries, refunds and chargebacks. The clearer and better documented your profile, the better your terms.
What the acquirer assesses
| Factor | Why it matters |
|---|---|
| MCC (merchant category code) | Sets the baseline risk of the industry |
| Sales model | One-off purchases, subscriptions and prepayment for future services carry different risk |
| Average ticket and volumes | The larger the payment, the bigger the potential dispute loss |
| Delivery time | The longer between payment and delivery, the higher the refund risk |
| Buyer countries | Affect fraud levels and verification requirements |
| Processing history | 3–6 months of statements with chargeback and refund ratios |
Low, medium and high risk
- Low risk: clear products and services, fast delivery, few refunds. Standard rates, no or small reserve.
- Medium risk: subscriptions, travel, online education, prepayment. Higher rates, a reserve is possible.
- High risk: industries with frequent disputes or regulatory limits. Requires a specialised acquirer, a reserve and strict monitoring.
How to prepare for underwriting
- A website with no open questions. Product description, prices, delivery and refund terms, privacy policy, contacts and company details.
- An honest MCC. A wrong code for a lower rate gets discovered and leads to account closure.
- Documents. Corporate documents, beneficial owner data, business account, processing statements.
- A forecast. Expected turnover, average ticket, refund share, countries.
- Anti-fraud. 3-D Secure, proof of delivery and a clear descriptor on the buyer's statement.
Our KYB/KYC support and website development services help prepare the documents and the site.
Frequently asked questions
What is a reserve and can I avoid it?
A reserve is a share of turnover the acquirer holds as insurance against future chargebacks. It is normal for new and higher-risk merchants. A good 6–12 month processing history helps reduce or remove it.
Why is a merchant account better than an aggregator?
Your own agreement gives more stable terms, lower risk of sudden freezes and often a better rate at volume. Aggregators are simpler at launch. See the comparison in our article on choosing a payment gateway.
How long does underwriting take?
From a few days to a few weeks depending on the industry, completeness of documents and how fast questions are answered.
Need a merchant account? Send a request on the merchant accounts page and we will build your merchant profile, match it to acquirer criteria and prepare the underwriting materials. The acquirer always makes the decision.