Risk & Compliance - Underwriting Process

What is the Underwriting process?

This payment facilitation platform maintains and meets legal and regulatory requirements for all users and business types to ensure a safe and secure environment for Merchants to process transactions and fund their accounts.

Underwriting is the process of validating aspects of an applying business (Facilitator, Referrer, or Merchant), and their personal owners' information. This validation process focuses attention on the following key elements of the Merchant’s application and the data provided in their signup form:

• Validating the Merchant’s business - ensures the Merchant’s submitted business data (e.g. address, website URL, etc.) is accurate and the scope of their goods/services is compliant with legal and regulatory guidelines.

• Validating the owners -  verifies the personal information (e.g. SSN, DOB, etc.) submitted by the Merchant is accurate and that they aren’t flagged on any government sanctions or payment-industry watchlists.

• Preventing illegal & fraudulent activity - as the payment facilitator, the platform is responsible to prevent any Merchants from engaging in illegal or fraudulent activity while using our platform. Some common relevant scenarios include preventing money-laundering (AML), identity theft, fraudulent account takeover etc.  

• Validating the Merchant’s bank account - confirming that the submitted banking information is valid and that the account is associated with the Merchant’s business and/or owner. This validation process meets industry requirements and helps prevent fraudulent activity.

For maximum flexibility and white-labeling, two unique underwriting structures are available depending on your portfolio’s industry types and specific needs. You can read more about each below:

• Manual Underwriting Process

• Automated & Instant Underwriting Process

Underwriting Process Flow

While boarding new Merchants, a two-step underwriting process is simultaneously triggered for each:

1. A new Merchant entity is created within the Payrix API and Portal 

2. The Merchant’s application is submitted to the Payrix Underwriting team for review and approval.

Upon underwriting approval, a Merchant will be able to begin processing payments.

Review and Underwriting SLAs

Related Underwriting Articles

Simplicity and quick access are important to you and your Merchants, and we are committed to providing instant approval for the majority of new accounts. You can find additional information about the underwriting process and the various customizations we offer on these pages: