What Is Underwriting & Why It Protects Your Business

Underwriting in payment processing is crucial yet often overlooked by business owners until issues arise. If your funds have been frozen by Square, Stripe, or PayPal, lack of proper underwriting is likely the cause.

What Is Underwriting?

Underwriting involves a payment processor reviewing your business before approving a merchant account, examining:

• The products or services you sell

• Your processing history

• Your chargeback ratio

• Your website terms, privacy policies, and shipping details

• Business ownership and identity verification

👉 If your processor didn’t underwrite you, you’re at risk.

Why It Matters to You

Many “easy” processors skip underwriting to get you live quickly. If they later find you're “high-risk” — like selling firearms or tactical gear — they may shut you down without notice, leading to:

• Frozen funds for 180+ days

• Terminated accounts

• Lost sales and angry customers

Proper underwriting ensures a stable account from the start, reducing surprises and maintaining compliance.

How 2nd Amendment Processing Does It Differently

2nd Amendment Processing underwrites every merchant upfront, supporting industries others avoid. We back 2A businesses, veteran-owned companies, and process what Big Tech won’t.

The Bottom Line

Underwriting is the backbone of a secure merchant account. Without it, your account may be at risk.

👉 Ready to work with a processor that’s built to last?

Apply now at www.2ndAP.com