In 2024, countless payment processors shut down the accounts of business owners across the USA and Canada.
This will be even more prevalent in 2025 as processors update their terms of service and tighten restrictions and regulations.
But why do payment processors close accounts and hold funds? We’ll discuss this below, but in short, it’s because they do not offer thorough Underwriting and do not collect the documents required to maintain a stable merchant account.
Table Of Contents:
1. Underwriting – Why you need it
2. Document Collection – Why it has to happen
3. The fastest, safe way to process payments
Merchant Account Underwriting – Here’s why you need it
Every year, millions of merchant accounts are shut down, disrupting business owners’ ability to process payments.
Why does this happen? As a consumer, you can dispute a credit card charge up to six months after the fact.
If a dispute arises, the money is pulled from the business’s account, leaving the business owner to fight the charge.
If the business has closed and a charge is disputed, the credit card processor is on the hook for the refund.
Consider this: the risk to the processor is a combination of the likelihood of your business closing, the chance of chargebacks, and your sales volume.
There are two main ways processors manage this risk:
First, the aggregator model (which does NOT offer Underwriting):
used by companies like Stripe, PayPal, and Square.
This model allows quick setup with minimal vetting, leading to rapid account freezes or closures when issues arise. This is not inherently good or bad; it’s just how their model works.
Unfortunately, this has led to millions of businesses that use Stripe having sudden account terminations and held funds.
Second, there’s the Underwriting model, which is less common because it’s more complex but drastically reduces the frequency of account issues.
At Easy Pay Direct, we specialize in effective underwriting with the right banking partners.
We take the time to understand your business operations thoroughly and board you with our banking partners that do – so account issues rarely happen.
Our approach allows you to maintain more control, minimize disruptions, and focus on business growth.
Underwriting Document Collection – Why It Has To Happen…
We hope you watched the video above… But if not, without the documents requested, your account can not go through Underwriting.
And without Underwriting… Your merchant account has a much higher chance of being shut down, or having funds held.
For any business looking to scale and maximize revenue, thorough Underwriting is a MUST!
The Fastest, Safe Way To Process Payments
According to our clients, Easy Pay Direct is the fastest, safe way to process payments.
That’s because our payment specialists know the industry inside and out, and we’ve had the pleasure of working extensively with nearly every business vertical.
We’ll thoroughly Underwrite your account and match your business with one of our back-end banking partners who works with your industry.
That way, you can worry less about account issues and focus on what matters… Scaling your business.
In addition, we built a gateway that allows you to put multiple merchant accounts into it- and automatically distribute your volume across them.
That way, if one of your accounts gets shut down or has an issue – the others are still up and running.
Combined with our extensive experience across various industries and dedicated customer service, we ensure greater stability and reliability for your business.
Choose Easy Pay Direct for the fastest safe way to process payments.
Just a few happy Easy Pay Direct clients below:
