When researching credit card processing services you may wonder why underwriting is important for a new merchant account. There are many factors and we will go through a few of them here.
Setting Up a New Merchant Account
So, you’re researching providers and some require underwriting and some don’t. It seems confusing, but it doesn’t have to be.
This extra layer of security takes time. The process can delay a new account set up. Without it, however an account is vulnerable.
What is Underwriting
Underwriting is used (in this case) as a financial control and offers protection for a business. The company providing it takes on the liability and guarantees the payment when processing credit cards.
Do All Merchant Processors Offer It
No. Some of the platforms that have been growing in popularity have done so because they tout the ease of set up, flat rates and free equipment. This all comes with a “cost” of consequence. Adding cost, delaying the time frame to wait for deposits to hit the bank account and (potentially) adding risk that a payment is not actually secure.
Secure Your Account Through Underwriting
Yes. You read that right. Underwriting helps to secure your account. It also offers additional benefits:
- speed to deposit – getting faster deposits to your bank account
- lower overall cost of processing
- improved PCI compliance
We know this can be confusing, but worth doing the additional research to find a merchant services provider who will offer security. If you ask us, “is underwriting for a new merchant account necessary”?, we will wholeheartedly say yes. Taking the short amount of time on the front end to secure this extra layer of protection can be well worth it in the long run.
Reach out to book a quick one on one call and we can share more with you and help tailor our services to your needs.