Insights

One of the most common frustrations among ISOs is hearing that underwriting is “taking too long.”

In reality, most delays are not caused by underwriting. They are often caused by information gaps or questions that require additional clarification before a decision can be made.

The good news is that many of these delays can be reduced or eliminated with the right preparation before the file is submitted.

At KORT, we review thousands of merchant applications across a wide range of industries and risk profiles. While every bank and processor has its own requirements, the reasons deals get delayed tend to be remarkably consistent.

The Merchant Website Doesn’t Match the Business

One of the first things underwriting reviews is the merchant’s online presence.

If the website creates confusion, the file immediately slows down. Common examples include:

• Products or services that don’t match the application
• Missing refund or cancellation policies
• Incomplete website content
• Broken pages or placeholder text
• No explanation of how products or services are delivered

When underwriters can’t quickly understand the business model, they start asking questions. Every question adds time.

Ownership and Corporate Structure Are Unclear

Another frequent cause of delays is inconsistent ownership information. The application says one thing. The incorporation documents say another. The website suggests something different.

This becomes even more complicated when dealing with:

• Multiple shareholders
• Foreign ownership
• Holding companies
• Complex corporate structures

A simple organizational chart can often save days of underwriting review. The easier it is for an underwriter to understand who owns and controls the business, the faster the file moves.

Financials Raise Questions

Underwriters are not looking for perfect financials. They are looking for consistency.

Problems arise when:

• Projected volume appears unrealistic
• Processing estimates don’t align with revenue
• Bank statements show activity that differs from the application
• The business appears larger or smaller than represented

When something doesn’t make sense, underwriting has to investigate. That investigation takes time.

The Business Model Is Not Clearly Explained

Many merchants understand their business so well that they forget nobody else does.

Subscription models, software platforms, marketplaces, future-delivery businesses, coaching programs, and digital products often require additional explanation.

One of the biggest mistakes ISOs make is assuming underwriting will “figure it out.” They won’t.

A short summary explaining how the business operates can significantly improve review times.

Missing Documentation Creates Multiple Review Cycles

Every time underwriting requests additional information, the review clock effectively resets.

What starts as a two-day review can quickly become one week or more.

Common examples include:

• Missing bank statements
• Unsigned applications
• Incomplete ownership information
• Missing processing statements
• Missing supporting documents requested upfront

The fastest approvals typically come from the most complete submissions. Not necessarily the strongest businesses.

Not All Delays Come From Underwriting

This is something many ISOs overlook.

Even when underwriting approves a file, there can still be reviews by:

• Sponsor banks
• Compliance teams
• Risk departments
• Network oversight groups

This is especially common in higher-risk industries and businesses with more complex operating structures. In these cases, underwriting may be finished while the file continues moving through additional layers of review.

Understanding where a file sits in the process helps set realistic expectations with merchants.

The Fastest Approvals Start Before Submission

The best ISOs don’t wait for underwriting to identify problems.

They identify them first.

A complete application, a clear website, realistic projections, and supporting documentation often make the difference between a two-day approval and a two-week review process.

At KORT, we spend a considerable amount of time helping partners understand how banks, underwriters, and risk teams evaluate merchant applications. Having reviewed thousands of files across a wide range of business models, we’ve learned that faster approvals rarely come from escalating a deal or pushing for exceptions. They come from presenting a merchant in a way that gives decision-makers confidence from the outset.

The strongest submissions are not always the largest merchants or the most established businesses. They are the files that clearly explain the business and anticipate the questions underwriting is likely to ask.