What this service is and who it is for
This service prepares a merchant account application for your own US LLC or UK Ltd. We help you decide whether you need a dedicated merchant account at all, assemble the document pack an acquirer expects, fill in the application with you, and help you answer underwriting questions until the acquirer decides. The account is always in your company's name with your true details, and you keep every login.
It suits businesses that have outgrown a payment facilitator, sell in a category that Stripe or PayPal will not take, or want pricing and terms set for their own business. Acquirers decide every application, and we cannot promise approval or particular rates.
What is a merchant account?
A merchant account is the arrangement that allows a business to accept Visa, Mastercard and other card payments. When a customer pays by card, the customer's bank (the issuer) sends funds through the card network to the business's bank for card payments (the acquirer). The acquirer holds the merchant relationship, takes on the risk of chargebacks, and pays the money out to your business bank account after deducting fees.
It is not the same as a business bank account. Your bank account holds your money. The merchant account is the channel through which card sales reach it. An online store also needs a payment gateway, the software that passes card details from your checkout to the processor.
Card fees are layered. Visa describes interchange as a transfer fee between acquiring banks and issuing banks, and says merchants do not pay it directly: they negotiate and pay a "merchant discount" to their financial institution, usually a percentage of each transaction. That merchant discount is the price you agree with your acquirer.
Merchant account vs payment facilitator
Stripe, PayPal and Square work as payment facilitators. They hold the relationship with the acquirer themselves and sign up thousands of businesses under it, so you never apply for a merchant account of your own. That is why sign-up takes minutes and pricing is a published flat rate. The trade-off is that the facilitator can hold funds, set limits or close an account under its own terms.
| Point | Dedicated merchant account | Payment facilitator (Stripe, PayPal, Square) |
|---|---|---|
| Who holds the acquirer relationship | Your business, under its own merchant agreement | The facilitator; you are a sub-merchant |
| Onboarding | Full underwriting before approval | Quick sign-up, with checks during and after |
| Pricing | Negotiated with the acquirer | Published flat rates |
| Setup and monthly fees | Set by each provider | Stripe and PayPal publish none for standard accounts |
| Business types | Some acquirers accept higher-risk categories | Each publishes a list of businesses it will not serve |
| Best for | Established volume, special categories, custom terms | New and small online businesses |
For comparison, Stripe's standard US rate is 2.9% plus 30 cents per successful domestic card payment with no setup or monthly fees, and PayPal's standard US rate for card payments is 2.99% plus a fixed fee. Acquirers do not publish standard merchant account rates in the same way, so we do not quote any.
Do you need a merchant account?
Most new businesses do not. If your business fits Stripe's or PayPal's rules, a payment facilitator is faster and cheaper to start. A dedicated merchant account starts to make sense when:
- your business is on a facilitator's prohibited or restricted list;
- your volume is large enough that negotiated pricing would save money;
- you need terms a facilitator will not offer, such as a specific payout schedule or several currencies through one acquirer;
- a facilitator has closed or limited your account and you need a stable alternative (be open with a new provider about why).
If you are just starting, see Stripe account setup and PayPal Business setup first.
Underwriting: how acquirers decide
Underwriting is the acquirer's review of how risky your business is. It carries the loss if your customers charge back payments and your business cannot pay, so it looks at what could go wrong. Typical questions cover:
- who owns and runs the business, and their identity and history;
- what you sell, how you deliver it and when customers are charged;
- your expected monthly volume and average transaction size;
- your refund and chargeback history, from previous processing statements if you have them;
- your website, policies and customer service;
- the company's bank account and financial position.
The result is not just yes or no. The acquirer sets your pricing, processing limits and any reserve based on what it finds.
Reserves and limits
A reserve is money the acquirer or facilitator holds back to cover future chargebacks and refunds. Common forms are a rolling reserve (a share of each day's sales held for a period and then released), an upfront reserve held from the start, and a capped reserve that builds to a set amount. PayPal's user agreement describes a reserve as a holdback of funds to cover the risk of negative balances, chargebacks, refunds or other liabilities, and merchant accounts use the same idea. The size and length of a reserve are set case by case, so we do not quote figures. Read the reserve terms before you sign.
High-risk merchant accounts
A business is treated as high-risk when it has higher chargeback rates, heavier regulation or a record of fraud in its category. Examples often include subscriptions with free trials, travel, nutraceuticals, adult content, gambling, debt relief and some financial services. Stripe, for instance, lists financial products, gambling, debt relief, nutraceuticals and travel services among categories on its prohibited and restricted businesses list.
Some acquirers specialize in these categories. Expect deeper underwriting, higher pricing, larger reserves and more monitoring. A legal business in a high-risk category can still get an account; a business that is illegal where it sells cannot, and we do not help anyone hide what a business does.
Ecommerce merchant account requirements
For online sales, the website carries a lot of weight in underwriting. Card network rules set standards for merchant websites, and Stripe's website checklist, based on card network rules, is a good public summary of what reviewers look for:
- a clear description of what you sell, with prices and currency;
- customer service contacts beyond a contact form;
- refund, delivery, return and cancellation policies where they apply;
- a privacy policy and the terms of any promotions or trials;
- a secure (HTTPS) checkout.
The network rules themselves are published by the networks, for example the Mastercard rules page, which includes a merchant edition of its security rules.
What documents acquirers ask for
- Formation documents: articles or certificate of formation and operating agreement for a US LLC, or certificate of incorporation and articles for a UK Ltd
- EIN letter (US) or Companies House number (UK)
- Passport or ID and proof of address for owners and directors
- Business bank account details in the company's name, often with a bank letter or statement
- Recent processing statements, if you have taken card payments before
- Financial statements or bank statements showing the business's position
- A business description: products, customers, delivery, expected volume and refund rate
Acquirers set their own rules on where owners live and where the business banks. Some may ask for a personal guarantee from the owner. We tell you what a provider asks for before you apply, so there are no surprises.
What is included and not included
- Included: a check on whether a facilitator would serve you first, a document pack, a website review against card network expectations, completing the application with you, help with underwriting questions, and a record of each step in your portal.
- Not included: any approval promise, negotiating on your behalf, processing fees, opening accounts in anyone else's name, holding your logins, or legal and tax advice.
How it works
- Order and intake. Start your order and tell us what you sell, your volume and the providers you are considering.
- Secure document upload. Upload your documents through the portal (see our security page).
- Preparation and review. Our filing team checks that your documents, website and answers match, and prepares a clear business description.
- Application with you. We complete the application together. You sign the merchant agreement and complete identity checks yourself.
- Underwriting follow-up. We help you answer the acquirer's questions with consistent documents.
- Handover. We record the agreed terms and reserve conditions in your portal so you know what you signed.
Timelines and fees
There is no government fee for a merchant account. Acquirers do not publish fixed underwriting times, and they vary with the business and how complete the file is, so we do not quote one. Our team starts once your intake and documents are complete.
Doing it yourself vs using us
You can apply to acquirers directly, and a business with a clean history and simple products often does fine alone. What we add is a complete, consistent file before underwriting starts, a website check and help with follow-up questions. If you still need the company itself, start with US LLC formation or UK company formation, and see our payment account setup overview for other providers.
Sources
- Visa: regulations and fees
- Mastercard: rules
- Stripe Docs: website checklist
- Stripe: prohibited and restricted businesses
- Stripe: pricing
- PayPal: merchant fees (US)
- PayPal: user agreement (US)
Fees, deadlines and rules on this page were last checked on 27 September 2026.