Payment processors hear this question all the time: Why is it taking so long to get my account approved? It's frustrating for everyone involved, but it's all part of the process. Over the past year, timelines have stretched to 60 days or more for merchants to complete onboarding, from internal compliance review to banking partner approval and final card brand registration. It's hard to believe that at one point, a merchant could open an account completely online with little to no review.
Times have changed, so this month, we look at why the process is more complex and what you can do to get approved faster.
The more prepared a business is, the smoother the underwriting process will be. Ensure your site contains compliant content and avoids anything that could create risk.
What’s Driving Approval Delays
The root cause of most delays is the constant evolution of Visa and Mastercard policies for high-risk merchants, along with stringent Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulatory requirements. Onboarding now requires far more than providing standard Know Your Business (KYB) documents. In addition to increased documentation requirements, merchants must provide detailed policies demonstrating sufficient controls for content moderation, model verification, consumer age verification, complaint and takedown procedures, and human trafficking prevention.
The payment processor's internal team has a significant workload, as they must review each policy to ensure compliance with bank and credit card brand standards.
Underwriting must also validate the effectiveness of those controls. Processors conduct a full review of each website, including behind-the-paywall content, to confirm compliance and verify that required disclosures are in place. These include a 2257 statement, terms and conditions, a privacy policy, compliant links, and accessible customer support.
Throughout the process, underwriting teams must also maintain detailed documentation and provide feedback on policies or requirements that still need to be addressed. This back-and-forth communication can slow the approval timeline. Once internal approval is complete, the application is passed to the acquiring bank partner for review and card brand registration. Each acquirer operates differently, as some require minimal review, while others require more extensive evaluation, which can further extend timelines.
Streamling the Approval Process
Some delays are unavoidable, but businesses can improve efficiency.
First, connect with an account manager or sales representative early in the process. Provide a detailed overview of your business model and reasons for working with the processor. Established businesses should share their processing history, including the length of time they have been operating, as a strong processing history can help accelerate approval. Clearly outlining expected processing volume can also help move the process forward.
For new businesses additional details are required, including an explanation of the business model, revenue projections, and marketing plans or traffic sources to support those projections. Experience operating other successful businesses, including online ventures, can also strengthen an application, though banks may request account statements to assess a new business's cash position.
Prepare Your Website in Advance
The more prepared a business is, the smoother the underwriting process will be. Ensure your site contains compliant content and avoids anything that could create risk, including models that appear underage, nonconsensual activity, depictions involving drugs or alcohol, bestiality, incest, violence, hate crimes, and content involving death or necrophilia.
Also, be prepared to verify domain ownership. In the U.S., acquirers generally prefer domains to be publicly accessible rather than privacy-protected. In the EU, privacy protections are acceptable, but documentation such as screenshots of domain ownership must be provided. Additionally, non-expiring website access must be granted to underwriters and bank reviewers.
Disclosures are another common cause of delays. Site footers must include an 18 U.S.C. 2257 record-keeping compliance statement, a privacy policy, terms and conditions, customer support links, and a complaint and content removal link.
Have Your Documents Ready
KYB requirements were once the primary bottleneck in onboarding, but are now often the most straightforward component. Ensure all corporate documents are prepared for review, including shareholder information, identification such as passports and utility bills for all ultimate beneficial owners (UBOs) and directors, tax information, and proof of settlement accounts. Missing documentation can delay approval.
Get Your Policies in Place Early
Policies are now among the most critical and time-intensive components of onboarding. Developing them with an experienced industry attorney is a worthwhile investment because banks and card brands continue to review and test these policies, and that is unlikely to change.
Content Moderation Policy: All websites, including subscription, cam and fan platforms, must have a content moderation policy. For licensed content, the policy should define acceptable content, review processes, model verification and consent procedures, and record-keeping standards. A sample agreement with third-party content providers may also be required.
For cam and fan sites, policies should outline moderation tools, the size of the human moderation team, and model onboarding procedures, including age verification and contractual agreements. Merchants should disclose any third-party providers and, in some cases, provide identification and signed agreements for performers.
Additional policy considerations may include:
- Real-time monitoring and content removal procedures for live streaming
- Controls to prevent CSAM, nonconsensual and other illegal content
- Enforcement processes for policy violations
- The balance between human review and automated moderation
- Procedures for contacting law enforcement
Consumer Age Verification: Policies must explain how age verification is conducted in jurisdictions where required and identify any third-party services used.
Complaint Policy: A formal complaint and content removal process is required. In addition to including links in the site footer, businesses must maintain a policy outlining how they handle takedown requests. All complaints must be addressed within five business days, and monthly reporting is required.
Human Trafficking Policy: A clear policy addressing human trafficking must be in place, and typically includes direct vetting of models and careful screening of any third-party agencies.
Fraud and Chargeback Policy: Token-based businesses, such as cam sites, must outline tools and processes used to manage fraud and chargebacks, including any third-party providers. Underwriting evaluates not only the existence of these policies but also whether merchants are actively following them.
The onboarding process may take longer than it once did, but it is also more predictable. Preparation on the front end makes a real difference. Understanding bank and card brand expectations is key to securing approval and bringing your business to market more efficiently.
Cathy Beardsley is president and CEO of Segpay, a merchant services provider offering a wide range of custom financial solutions, including payment facilitation, direct merchant accounts and secure gateway services. Under her direction, Segpay has become one of four companies approved by Visa to operate as a high-risk internet payment services provider. For questions or help, contact sales@segpay.com or compliance@segpay.com.
