Underwriting is a due-diligence process that evaluates a business’s risk profile, credibility, viability, and legality before approving a merchant account application. Underwriting is completed by a payment processor or acquirer — or its ISO.

Underwriting includes a review of the business model, financial history, chargeback exposure, and compliance documentation. For high-risk industries, underwriting tends to be more rigorous and may require additional documentation.

At AltoPay, we typically ask for the following information during the underwriting process:

• Information about your business (legal name, address, contact information, how long you’ve been in business, description of items you sell)
• Information about your business’s owners and other stakeholders (name, address, phone number, date of birth)
• Information about your processing and sales model (sales volume, monthly transaction counts, currencies, chargeback and fraud ratios)
• Information about your website (affiliate network, call center, fulfillment company)

We will probably also ask for the following documents:

• The official, legal document filed with a local government agency (certificate of incorporation, memorandum, appointment of directors, etc.)
• Copies of valid passports and utility bills for all shareholders, owners, or directors
• Proof of physical presence in the country you are applying for (tenancy agreement for physical office space, home address of a director or shareholder, etc.)
• Voided check or bank letter with account information for deposits
• Proof of website domain ownership
• VAT/tax registration or certificate
• Payment Card Industry (PCI) certificate or SAQ
• Last 6 months business bank statements
• Last 6 months processing history

If you sell physical goods, we might also need the following:

• Fulfillment agreement (signed by shareholders)
• Manufacturing agreement, paid invoices, or purchasing order (if fulfilled in house)
• Example email sent after order is fulfilled

Good underwriting sets the foundation for reliable processing. At AltoPay, we guide merchants through a transparent underwriting process that avoids surprises later — ensuring your business is aligned with processor and acquirer expectations from day one.