Understanding Stax' Underwriting Process

This article explains what to expect once a merchant’s application has been submitted, the Stax Underwriting team will review the application before it is approved and activated.

Throughout the Enrollment process, the application status may change based on Underwriting’s findings.  Here are the different status dispositions:

    1. Awaiting Signature: The customer has begun the application, but has either not completed it fully, or has completed it but has not signed and submitted.
    2. Awaiting Review: The customer’s application has been successfully submitted, and is now in the underwriter’s queue.
    3. Application Pended: The application has been pended by Underwriting and requires additional documentation to approve.
    4. Application Rejected: The customer’s application has been rejected for processing.
    5. Conditionally Approved: The customer’s application is approved, on the condition that some supporting documentation is provided.  Typically, funds will be held until the account is fully approved, however the customer can process freely. See below for more information on conditional approvals.
    6. Application Approved: The application has cleared underwriting and is approved for processing!

If the application is pended and the requested information has been submitted, you should hear back the same day (during normal business hours) on the underwriting status. Keep in mind that an application can pend for a combination of reasons listed below:

Pend Reasons



Signor Verification

→ Social Security Number Mismatch

→ Signor isn’t on record

→ Home address doesn't match

→ Colored copy of Driver's License to verify signer and home address

→ May request Social Security card 

Business Location

→ Can’t validate business address

→ Lease/utility bill

→ Certificate of occupancy

Volume Clarity

Need verification for:

→ Annual volume

→ High ticket

→ Average ticket

→ Clarification/update on volumes

TIN Mismatch

→Tax ID and Legal Name don’t match IRS records

→ Review TIN/Legal Name entered to ensure accuracy

→ Legal name vs DBA entered incorrectly

→ If it’s still not corrected, may need a SS4 which will come from IRS

→ If they don’t have the SS4, need a 147C

Previous Processing History/Credit

→ Credit score is low 

→ Need bank statement to validate financial standing

→ 3 months of previous processing history AND/OR run credit

Marketing Materials

→ Need additional information to validate what the business is selling

→ Website

→ Brochure

Deposit Policy

→ Additional information is requested if payments are taken in advance

→ How much did they take in advance?

→ How far in advance?

→ When are services completed?


→ Need bank statement to validate financial standing


→ Three months of bank statements

Banking Verification

→ Bank info didn’t validate

→ Void Check

→ Bank Letter

Conditional Approval Explained

An underwriting status of conditional approval simply means that the customer’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 disclaimer indicating that the account is having funds held.  The Underwriting Status will reflect “Conditionally Approved” as seen in the screenshot below:

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

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.


For more information on our Enrollment process or Conditional Approval, Contact your Partner Success Manager directly.