Payment Processing with Automated Onboarding

May 2, 2023 | Payments

Payment processing with automated onboarding is the fastest way to open a merchant account. Automated onboarding helps merchants expedite the application process. Oftentimes, merchant service providers have a lengthy onboarding process. It can entail collecting documents proving your identity, ownership, and company earnings.


Payment Processing with Automated Onboarding
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With automated onboarding, a merchant uses online channels to apply for an account and get instantly approved. Underwriting happens in the background, and information enters through an interactive portal. This saves business owners time from the back-and-forth emails and phone calls. This can slow down the onboarding process.

What Is Automated Onboarding?

Automated onboarding in payment processing is an online application system for merchants. It speeds up the entire process of opening a new merchant account. For low risk vs high risk merchants, it’s a way to immediately have the ability on your website to accept credit card payments. Alternatively, for high risk merchants, there are often more regulations and stricter underwriting processes. This helps banks better understand your business type and open up a custom merchant account.

What Is Automated Onboarding?

Benefits of Automated Onboarding for Merchant Accounts

There are a number of reasons that a quick onboarding process is beneficial for merchants and banks that open their accounts. 

  • Expand Your Credit Card Payments Options – With growing consumer demand for online forms of payment, credit card processing is a must-have for anyone selling goods through their e-commerce store. Automated onboarding helps you get a new e-commerce store running with one of the most essential tools – the ability to receive payments. 
  • Save Time on Merchant Applications – There are a number of top merchant providers, but not all of them can approve your merchant account instantly. Finding one with automatic onboarding is critical for an entrepreneur who wants to save time on the more technical parts of their business. 
  • Up Front Costs and Fees – One of the top benefits automated onboarding provides is that there are no negotiating fees. They make their rates and fees transparent, so you know exactly how much they charge per transaction. 
  • Populating Key Information may sound straightforward, but digital applications can analyze the information you provide and produce essential outputs. Namely, when you enter your type of business and complete all essential components, you receive an MCC code and a merchant ID number. 
    • MCC Codes are codes that correspond with your industry. Banking entities use them in various types of informational documents, from taxes to bank statements. 
    • A MID or Merchant ID Number is a number created for your specific business. It’s like a social security number for the company you use to identify it. 

The Merchant Onboarding Process

The Merchant Onboarding Process


The merchant onboarding process has multiple steps that business owners must take to obtain a payment processing solution. This process is different for every ISO or bank that provides merchant accounts.

  1. Find a merchant solutions provider that suits your business – First determine what type of payment solution you’ll be looking for. It may be for a retail business or an online store. Additionally, decide how you want to accept payments. For example, if you have a food truck company at multiple locations, you may want a mobile payment solution. On the other hand, you may have an established business selling machine parts to vendors. In that case, ACH payment processing may be the best solution.
  2. Fill out their merchant application – Once you find the best merchant account provider for your business, you’ll have to apply. The application is usually only a few clicks away on their website as a digital online form. Keep in mind, you have to enter sensitive information so use the login credentials you signed up with. With them you can fill out the application incrementally. Plus, it secures your data so only you have access.


  3. Submit application to underwriting – This step is often the most tedious part for merchants as it can take days or weeks for an application to be approved. The plus side is that payment processing with automated onboarding eliminates this step. Essentially, it uses an rapid assessment program that results in an instant approval.


  4. Approved merchant account – After you enter your information and either an underwriting team or automated onboarding program reviews it, you’ll be ready to accept payments.