High-Risk Merchant Account Readiness Checklist for eCommerce Stores

How this works: the rules behind your results

Every rule this checklist uses is a TouchSuite tool assumption, listed here so you can see exactly how your score and ranking are produced. None of them measure approval likelihood, and no pricing assumptions are used.

Ranking by industry

Why eCommerce stores get extra underwriting scrutiny

Nearly every sale in an online store is card-not-present. There is no chip read and no signature, so if a customer disputes a charge, the store has to prove the order was authorized and delivered. Underwriters know this, so they look harder at the things that prevent disputes in the first place: clear refund and cancellation terms, a recognizable billing descriptor, and a visible way to contact you.

Some eCommerce models get a closer look than others. Drop shipping (where delivery times can stretch and you don't control fulfillment), subscription boxes and free-trial offers (recurring charges customers can forget about), and stores selling supplements or other regulated products tend to draw more questions. If your store sells nutraceuticals, choose that industry in the tool so product documentation is prioritized. Most other online stores should choose 'Other'.

Your website is effectively part of your application. Expect an underwriter to browse it the way a customer would: add something to the cart, read the checkout page, look for shipping times, and check that the business name on the site matches the one on your paperwork.

What eCommerce stores should have ready before applying

Refund policy: state the return window, who pays return shipping, how long refunds take to post, and how to start a return. A policy buried in the footer that just says 'all sales final' gives customers little reason to contact you instead of their bank.

Cancellation policy: if you sell subscriptions, memberships, or auto-ship, spell out how to cancel, by when, and what happens to the next charge. If you offer a free or discounted trial, the checkout page should show what the customer will be billed and when. This is the policy underwriters read most closely on recurring billing.

Billing descriptor: online stores often run under a brand name that differs from the legal entity. If your store is 'Northside Candle Co.' but the statement reads as your LLC's legal name, customers may not recognize the charge. Make the descriptor match the brand they bought from, and consider including a support phone number or URL if your processor allows it.

Product documentation: product sheets, supplier or fulfillment agreements, and sample order confirmations with tracking. For drop shipping, be ready to explain who ships, from where, and typical delivery times, since shipping delays are a common source of 'item not received' disputes.

Seasonality, dispute timing, and your eCommerce numbers

Many online stores see volume swing with holidays, promotions, or product launches. Underwriters compare the monthly volume and average ticket on your application with your statements, so if one month was a holiday spike, say so rather than presenting it as your normal month. A short note explaining your seasonal pattern saves back-and-forth.

Disputes usually arrive weeks after the sale, not in the same month. That means a store that had a big holiday month can see disputes from those orders land in a slower month, which makes a simple same-month ratio look higher than the underlying rate. The tool's dispute ratio is a quick snapshot; use it to spot trends, and confirm how the card brands and your processor actually calculate it.

While you are gathering processing statements, it is worth reading the fee lines. Online stores often see gateway fees, PCI compliance or non-compliance fees, statement fees, and per-transaction fees layered on top of the rate. Knowing what you pay today makes it easier to compare offers on equal terms.

Worked example: a hypothetical eCommerce store switching processors

Hypothetical numbers for illustration only. A home goods store has been selling online for 30 months and is switching processors. It enters $40,000 in monthly card volume, 800 transactions, and 6 disputes. The tool shows an average ticket of $50.00 ($40,000 ÷ 800) and a same-month dispute ratio of 0.75% (6 ÷ 800 × 100).

The owner ticks 6 of the 9 checklist items: processing statements, bank statements, formation documents, refund policy, privacy policy, and contact info. The result is '6 of 9 items in place (67%)', which falls in the 'Partially ready' stage. Missing items are listed in order: cancellation policy under 'Fix next' (the store just launched a monthly subscription), then product documentation and billing descriptor under 'Finish before you apply'.

The practical next step: publish a cancellation policy for the subscription, update the descriptor to match the storefront brand, gather supplier agreements and sample order confirmations with tracking, and write one or two sentences explaining why the store is switching. A good result for an eCommerce store is a complete document set where the website, statements, and application all tell the same story.

Estimates are based on published industry averages and are not a quote. Actual rates depend on card mix, ticket size, industry, and underwriting. This checklist does not predict approval and is not an offer of an account. When you're ready, talk to a payments specialist at touchsuite.com/contact.

Frequently asked questions