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Conditional Approval

Conditional Approval allows your merchants to begin actively processing payments faster due to less required information at the beginning of the application process.

Once conditionally approved, a merchant can process payments while their application is reviewed for completeness. Any funds generated from processing will be held until all outstanding requirements are reviewed and approved. Once the applicant is approved, any funds processed can be deposited to the appropriate accounts.

Approvals can be delayed due to bank verification, e-commerce validation, or signer verification errors. Conditional approvals allow the merchant to continue to process payments while their application is completed (review of void cheques, e-commerce validation requirements, articles of incorporation or valid driver’s license of the signer).

Conditional Approval Request

  • Conditional Approval is a partner-only feature, depending on your onboarding process. If you are interested, it should be requested in advance of launch.
  • Once a merchant is conditionally approved, you will need to ensure they provide the required documents and information to finalize the onboarding process and receive full approvals to start receiving funds.
  • Conditional Approval provides flexibility within the onboarding process and allows your merchants to begin processing more quickly. However, it can cause some friction if the remaining information is not provided, causing their funds to be held.
  • Stax recommends extreme clarity to your merchants that their funds will not be deposited from processed payments until all outstanding information is provided and approved.

*Note: Merchants that require funding immediately upon processing should not use Conditional Approval. Please get in touch with Stax Support for more information.

If you are interested in Conditional Approval, we advise implementing a similar flow or sending them into Stax Pay to upload the required documentation needed for full approval.

*Stax Pay’s rendition of a merchant’s view if they have been Conditionally Approved.

Implementation

To enable Conditional Approval, choose one of the following three options for how your merchants will be able to upload the necessary documents to get full approval. These options will loosely correlate with the way that you chose to implement merchant enrollment.

*Note: The merchant’s customer experience should be considered when making this decision.

  1. The merchants can use Stax’ built-in “Conditional Approval” flow. In a merchant’s SETTINGS page in Stax Pay, if the merchant is Conditionally Approved, they will have a yellow banner indicating their missing items. They can click the link directly in the banner to upload the remaining documents. This option works well if the partner uses Stax Landing Page Enrollment or Hybrid Enrollment.
  2. If the ISV application is where merchants will be interacting with payments the most, the ISV should build a similar notification system to handle the Conditional Approval case in their software so that it is very clear that the merchant is conditionally approved and that deposits will be held until the merchant provides the remaining information. The ISV should then implement a Conditional Approval SSO feature to get the merchant to the document upload page when they have been conditionally approved. This option works well if the partner uses Stax Hybrid Enrollment or fully API-driven enrollment.
  3. If you choose to keep the Conditional Approval UI entirely within your software, you can implement a feature that allows merchants to upload the requested documents directly. This option works well if the partner uses API-driven enrollment.

Testing Conditional Approval

A merchant is considered “Conditionally Approved” when their underwriting status is “APPROVED”, and there is one or more associated sub-statuses.

Using TEST MODE in Stax Connect

  • Partner sandbox users can put a sandbox merchant into Conditional Approval by Setting their underwriting status to ACTIVE + marking off one or more of the underwriting sub statuses.

Using this combination of information, developers can query this underwriting information from a merchant’s registration (GET merchant/{merchant_id}/registration) to properly build out the visibility into the partner’s application.