8 Steps That Define Your Merchant Setup

Onboarding isn’t just how you get a merchant account, it’s how your entire acquiring setup is defined. It’s not a one-step approval. It’s a layered, strategic process that shapes how you’re priced, monitored, and supported throughout the relationship with the PSP or acquirer.

There are two core dimensions to merchant onboarding:

• Regulatory requirements – non-negotiable and standardised across all merchants

• Configurable parameters – tailored by the acquirer’s risk appetite, commercial model, and internal policies

The regulatory layer typically includes:

• KYB and KYC checks

• PEP and sanctions screening

• PCI DSS validation

• AML and transaction monitoring

• Adherence to card scheme thresholds and dispute rules

These steps set the minimum compliance baseline for approval.

But it’s the configurable setup where most friction emerges. Acquirers assess your business and apply setup decisions based on internal risk management policies , portfolio strategy, and operational preferences.

These include:

• How your MIDs are segmented

• Which MCCs are applied to your activities

• How descriptors are configured to reduce disputes

• Which regions, transaction types, and channels are permitted

Misalignment doesn’t always mean non-compliance, often it is a scoping issue. 

For example, target markets are a common pitfall. When the declared geographies don’t match where the traffic actually comes from, it creates issues that ripple across your acquiring setup and lead to:

• Underwriting disconnects and potentially higher fees

• Acquirer mismatches, especially in regulated sectors

• Triggered reviews or limits imposed after go-live

From descriptors to MCC logic, every setup choice affects your performance.

We’ve mapped the onboarding journey in 8 steps and the key decisions that shape your processing setup.

Check it here!