What is underwriting?
Like many business owners that would like to open a merchant account for their business, you might feel overwhelmed by the idea of having to go through the underwriting process.
Underwriting is the system that your processor or bank has in place to decide whether or not to give a business a merchant account.
How does it work exactly?
What is a “Reserve”?
If you previously applied for a merchant account, you probably already heard about it.
A merchant account reserve is a set amount of the business’s money that is put aside by the acquiring bank as a security deposit. It can be an upfront payment or a monthly percentage subtracted from your sales.