What is Conditional Approval?

This article details how Conditional Approval can help get your merchants processing earlier.

In an effort to expedite the underwriting process for the merchant, it’s possible that a new merchant account application may be conditionally approved rather than pended by the Stax underwriting team.

An underwriting status of conditional approval simply means that the merchant’s account has been approved for processing; however, funds will be held (i.e. not deposited) until the account has been fully approved.  During this time, the customer can process freely, but their funds will not be deposited.

Conditional approval can occur on accounts that fail bank verification.  This means that Stax has been unable to verify the banking information provided in the customer’s application, and will therefore hold all funds until that bank information has been verified.

To do this, the customer need only provide a voided check from the bank account in question, or a bank verification letter.

In Stax Connect, the Account Status will display “pending” and there will be a small yellow triangle indicating that the account is having funds held.  The Underwriting Status will reflect “Conditionally Approved” as seen in the screenshot below:

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Clicking into the merchant’s account will then give some additional information on the conditional approval, as seen here:

Screen Shot 2021-10-19 at 4.56.04 PM

The customer can provide the needed documentation which Stax will then use to determine if the conditional approval can be lifted and the account can be fully approved for transactions and deposits.

Voided Check

If the merchant opts to clear the conditional approval with a voided check, it must meet the following criteria:

  • Contains the full account and routing numbers
  • The account name matches the business name
  • Is an official check from the issuing bank
  • Is from a valid banking institution (not a virtual bank - e.g. Brex)
  • Is not a deposit slip or starter check

Bank Verification Letter

If the merchant chooses to obtain a BVL from its bank, then the following criteria must be met:

  • Issued on official letterhead from the bank
  • Contains the full account and routing numbers
  • Refers back to the merchant / individual in question by name
  • States that the account is valid and is in good standing with the bank
  • Includes the name, title, and contact information of the issuing agent
  • Includes the issuing agent’s signature (virtual or otherwise)

*No other means of bank verification will be accepted at the moment, but Stax reserves the right to change this policy as needed.


Contact your Partner Success Manager directly to discuss if Conditional Approval is right for you.