What "Merchant Under Review" Actually Means
A merchant review is a formal investigation initiated by your payment processor when its automated systems or risk team detect something outside normal parameters. During this period, payouts (settlement) may be paused in full or in part, while payment acceptance might continue or be restricted depending on the severity.
This is not an automatic termination. It is a pause — but an unresponded pause can quickly become one.
What Triggers a Review and Payout Hold
Chargeback spike. The most common trigger. When your chargeback ratio exceeds 1% — the threshold enforced by Visa and Mastercard — your processor is contractually required to act. Even a temporary spike driven by a seasonal promotion can be enough.
Sudden transaction volume increase. An unexpected surge in revenue is good for your business but a risk signal for your processor. It can indicate an undisclosed change in business model, which requires re-underwriting.
Unusual transaction patterns. Large one-off payments, transactions from atypical geographies, irregular frequency — these all trigger AML monitoring systems.
Customer complaints. A cluster of complaints filed with issuing banks, with the processor itself, or with a regulatory body can initiate a review without any chargeback threshold being crossed.
Business structure changes. Change of director, registered address, or business activity description may prompt the processor to conduct fresh underwriting.
External factors. Media coverage, regulatory investigations, or legal proceedings involving your brand can trigger a precautionary review.
What to Do — Step by Step
1. Act immediately, not reactively. You typically have 5–10 business days to respond before the situation escalates. Every day of silence reduces your options.
2. Locate the official notice. Check your email, merchant dashboard, and the processor's ticketing system. The notice should list the specific documents or information requested.
3. Gather documentation proactively. Even if the processor hasn't specified everything it needs, prepare: corporate registry extract, financial statements, a written explanation for any metric anomalies, delivery evidence for recent orders, and records of customer communications.
4. Write a clear explanatory letter. Explain the reason for any unusual activity in plain, factual language. "We ran a campaign that drove a 200% sales increase in two weeks" is a clear explanation. Silence is the most dangerous response you can give.
5. Ask for a specific timeline. Request directly: "What is the expected review period and when will payouts resume?" This creates a paper trail and helps you plan.
6. Build your contingency in parallel. While working through the appeal, begin onboarding a backup processor. If the review ends in account termination, you'll already have an alternative in place.
FAQ
How long does a review take? Anywhere from a few days to several months. Most processors commit to an initial response within 5–10 business days. A serious situation or slow document submission can extend it significantly.
Can I keep accepting payments during the review? Often yes — payment acceptance continues while only payouts are paused. Confirm this directly with your account manager, as the policy varies by processor.
What if the review results in termination? Request a written explanation and a clear timeline for release of held funds. Then work with a specialist provider — one equipped to underwrite merchants coming from a terminated account.
Facing a review right now? Contact Marix — we'll help you prepare your response and set up a backup payment channel while you wait.