Can the application be signed electronically?

Yes. The ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states) generally make electronic signatures legally valid when intent, consent, attribution, and record retention standards are satisfied. Exceptions include wills, certain court filings, and other statutorily excluded documents.

What supporting documents are typically required?

Common attachments are recent bank statements (three months), a voided check or bank letter, owner identification, business formation documents, merchant processing statements, and signed addenda for high-risk products. Provide clear PDFs to avoid delays during underwriting.

How should bank account details be formatted?

Enter the ABA routing number as nine digits (no dashes or spaces) and the full account number exactly as the bank shows. Upload a voided check or bank letter for verification. Incorrect formats result in failed ACH settlement and delays.

Can a remote notary be used?

Possibly. Remote Online Notarization is permitted in most states, but rules vary by jurisdiction. RON requires identity proofing, real-time audio-video recording, and retention of notarization logs. Confirm your state's notary commission rules before relying on RON for merchant agreements.

Does the application require notarization or witnesses?

Generally no; merchant applications do not require notarization or witnesses unless a sponsoring bank or state rule specifically requires it, or where a power of attorney or escrow arrangement is involved. Check acquirer onboarding checklist and state notary statutes.

What happens if the TIN is incorrect?

If the TIN is incorrect, payers may apply 24% backup withholding on payments and file corrected information returns. Repeated errors can trigger IRS penalties for incorrect filings under IRC §6721, and may require corrected W-9 and new documentation.

Electronic Signature
Templates
Sales
Sales Merchant Application

Sales Merchant Application

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

SALES MERCHANT APPLICATION

Applicant Information

Legal Business Name Doing Business As (DBA) Business Type (select all that apply)

Corporation LLC Sole Proprietor Partnership Nonprofit Other

Federal Tax ID / EIN

State/Country of Formation: Business started on: Day Month Year

Business Address

Billing address is same as business address:

If different, Billing Address

Primary Contact

Contact Name Title Phone Email

Ownership / Principals

Principal / Owner 1 Name: Title:

Ownership %: Home Address:

Owner 1 SSN (last 4 digits) Additional Owners / Principals

Banking / Settlement Information

Bank Name

Account Type: Checking Savings

Routing Number Account Number Account Holder Name Bank Address

Processing Profile

Average Monthly Processing Volume Average Ticket Amount Peak Ticket Amount Anticipated Monthly Chargeback Rate % Primary Merchant Category (MCC) Description of Products / Services

Sample Products / Services Offered

Item	Description	Quantity	Unit Price	Total

Compliance & Risk Disclosures

Does the business sell or distribute any of the following (check all that apply)?

Adult content Pharmaceuticals / prescription drugs Weapons / ammunition Tobacco / vaping products

CBD / hemp-derived products Gambling / lottery products High-risk digital goods / intangible goods

If any of the above are checked, provide full details

Has the merchant or any principal ever had a merchant account terminated, suspended, or placed on hold? Yes No

If yes, provide explanation and dates

Fees, Settlement & Payment Terms

Requested settlement frequency: Standard holdback / reserve requested:

Payment processing fees, chargeback fees, and any other fees will be set forth in a separate Merchant Processing Agreement. Applicant acknowledges that fees may include interchange, assessment, and processor fees and that the acquirer may withhold amounts for chargebacks, fines, or noncompliance.

Representations, Warranties & Authorizations

By signing this Application, the Merchant represents and warrants that: (a) the information provided is true, complete and accurate; (b) Merchant will comply with all applicable laws, card network rules, and any underwriting requirements; (c) Merchant owns or has the right to sell the products or services described and will not misrepresent product or shipment information to customers or acquirers; and (d) Merchant authorizes the acquirer and its agents to verify any information provided, to obtain business and personal credit reports, and to contact banks, trade references and card networks as part of underwriting.

Merchant hereby authorizes periodic deposit and, if applicable, debit adjustments to the bank account listed for settlement of transactions and for the collection of chargebacks, fines, fees or reserves. This authorization remains in effect until terminated in writing by the acquirer or merchant in accordance with a processing agreement.

Indemnification, Limitation of Liability & Governing Law

Merchant agrees to indemnify, defend and hold harmless the acquirer, its affiliates and service providers from any claim, loss, liability or expense (including reasonable attorneys' fees) arising out of Merchant's breach of this Application, violation of law, fraud, misrepresentation, or the sale of prohibited goods or services.

EXCEPT FOR LIABILITY ARISING FROM GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, THE AGGREGATE LIABILITY OF THE ACQUIRER ARISING OUT OF OR IN CONNECTION WITH THIS APPLICATION OR ANY SUBSEQUENT PROCESSING AGREEMENT SHALL NOT EXCEED THE AMOUNTS PAID TO THE ACQUIRER BY MERCHANT IN THE PRIOR SIX (6) MONTHS.

Governing law: The laws of the state or jurisdiction identified by the acquirer will govern. Proposed governing state:

Audit, Records & Security

Merchant shall maintain complete and accurate transaction records and make them available to the acquirer, card networks or regulators upon request. Merchant certifies that it will comply with required data security standards and will promptly notify the acquirer of any security breach involving cardholder or bank account data.

Certifications & Acknowledgements

The undersigned certifies under penalty of perjury that the information provided in this Application is true and accurate, and that the undersigned is authorized to bind the applicant company. The undersigned understands that approval of this Application is subject to underwriting and acceptance by the acquirer and that additional documentation may be requested.

Applicant acknowledges responsibility for all chargebacks, refunds, fines, assessments and any investigations related to the merchant's activity. Applicant further agrees that the acquirer may withhold funds or establish a reserve if warranted by underwriting, chargeback activity, or compliance risk.

Additional Information

Attach or describe any additional underwriting information

Merchant Printed Name:

By:

Date:

Acquirer / Company Printed Name:

By:

Date:

What a Sales Merchant Application Is and why it matters

A Sales Merchant Application is a business form used by merchants to request payment processing services and establish settlement access. It gathers legal entity and ownership data, tax identifiers, banking details for ACH or settlement, processing history, average ticket and monthly volume estimates, and descriptions of sales channels. Processors and sponsoring banks use the application to perform KYC/AML checks, assess chargeback and fraud risk, set pricing and reserve levels, and meet card network and banking compliance requirements during underwriting.

Why completing the application correctly matters

A clear, accurate Sales Merchant Application speeds underwriting, reduces onboarding friction, and helps processors meet bank, PCI, and AML obligations. Complete, consistent data lowers the chance of funding holds, unexpected reserves, or application denials.

Who completes or reviews the Sales Merchant Application

Financial operations, payments, and underwriting teams complete or review merchant applications to verify identity, processing risk, and settlement arrangements.

Payment processors and ISO/MSPs perform underwriting, pricing, reserve, and chargeback risk assessments.
Bank acquirers evaluate BIN sponsorship, ACH setup, and compliance with bank rules.
Merchants’ accounting or finance teams supply revenue figures, processing history, and bank statements.

Small businesses, ecommerce merchants, and high-risk verticals often require different supporting documents and underwriting timelines.

Core components included in a professional Sales Merchant Application

The application is organized into business identity, ownership, banking, processing profile, disclosures, and authorization sections. Each area captures specific underwriting and settlement details needed to set up and maintain merchant processing services.

Business Info

Enter legal business name, DBA, EIN or SSN, entity type, formation date, and full principal contact details. Inaccurate or missing data delays bank verification and tax reporting.

Ownership

List owners with 25%+ interest, including name, title, SSN/EIN, home address, date of birth, and ownership percentage. Ownership data is used for KYC and OFAC screening.

Banking Details

Provide routing and account numbers for settlement, account type, bank name, and a voided check or bank letter to verify account ownership for ACH and settlement.

Processing Profile

Estimate average ticket size, projected monthly volume, sales channels (card-present vs ecommerce), chargeback rate, refund policies, and any recurring billing arrangements. Include examples of typical transactions and seasonality.

Risk Disclosures

Declare high-risk products or services, prior account terminations, outstanding chargebacks, processing holds, and any regulatory notices. Full disclosure prevents sudden account freezes and costly remediation steps.

Authorization

Authorized signer must provide printed name, title, signature, and date. Include electronic signature consent where permitted and attest to accuracy under penalty of perjury as applicable.

Essential data elements required on the application

Business Tax ID: EIN or SSN; enter exactly as on file

Owner SSN: Full SSN for 25%+ owners

Bank Routing: 9-digit ABA routing number

Bank Account: Account number used for settlement

Processing Volumes: Average ticket and monthly volume

Authorized Signer: Name, title, phone, and email

Step-by-step: completing the Sales Merchant Application

Follow these steps to complete a Sales Merchant Application accurately and speed up underwriting and bank verification.

01

Prepare documents: Gather EIN, bank statement, and voided check.
02

Complete form: Enter business details and processing estimates.
03

Review disclosures: Declare high-risk activities and prior terminations.
04

Sign and submit: Provide authorized signature and submit to acquirer.

How to set up the application for online completion

Configure online application fields and conditional logic for faster merchant onboarding and accurate data capture.

Field	Configuration
Merchant Legal Name	Single-line text; required
Ownership Details	Repeatable block; owner fields
Banking Verification	File upload: voided check or bank letter
Processing Estimates	Numeric fields; monthly volume and avg ticket

Where to send the completed application and how it is processed

Where to send and how processors route Sales Merchant Applications during underwriting and account setup.

Submit to Acquirer: Send completed application to sponsoring bank or payment aggregator.
Provide Docs: Attach bank statements, voided check, and owner IDs.
Underwriting Review: Acquirer verifies identity, volume, and risk factors.
Account Activation: Settlement is enabled after underwriting and compliance checks.

Distribution channels and platform requirements for electronic submission

Choose distribution channels compatible with your systems and eSignature provider for secure and auditable submission.

Email Upload: Secure portal or encrypted email.
API Integration: Direct POST to acquirer API.
eSignature Platform: PDF upload with audit trail.

Typical timelines, deadlines, and expected processing windows

Typical timelines and deadlines for merchant application steps, underwriting, and activation vary by provider and risk profile.

Application Submission Deadline:

No fixed federal deadline; submit as needed.

Underwriting Response Time:

Standard 1–5 business days; extended for high-risk.

Documentation Request Window:

Provide requested documents within 5–10 business days.

Account Activation:

Activation occurs after successful underwriting and bank setup.

Annual Reviews:

Some acquirers perform yearly risk reviews and audits.

Common mistakes that delay merchant onboarding

Incomplete owner data causes KYC delays and may trigger requests for additional IDs, slowing approval and increasing chance of temporary holds.
Mismatched bank account information leads to failed ACH settlement attempts and may require resubmission after bank verification.
Undisclosed high-risk products or excessive chargebacks often result in higher reserve requirements or outright application denial.
Incorrectly completed signature blocks, or absence of an authorized signer, can void the application and delay funding.

Consequences and common risks from errors or non-disclosure

Account Reserve: Funds held as risk mitigation

Higher Fees: Increased processing rates applied

Application Denial: Account not approved

Delayed Settlement: Payouts postponed pending verification

Regulatory Fines: Noncompliance may trigger penalties

Chargeback Liability: Merchant liable for disputed amounts

eSignature provider comparison for Sales Merchant Applications

Provider comparison focused on features relevant to Sales Merchant Applications: pricing, trial options, bulk send, audit trail, HIPAA compliance, and envelope limits.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no card required	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about Sales Merchant Applications

Answers to frequent questions about completing, signing, and submitting Sales Merchant Applications, including eSignature and supporting document best practices.

Need help? Contact support

Can the application be signed electronically?
Yes. The ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states) generally make electronic signatures legally valid when intent, consent, attribution, and record retention standards are satisfied. Exceptions include wills, certain court filings, and other statutorily excluded documents.
What supporting documents are typically required?
Common attachments are recent bank statements (three months), a voided check or bank letter, owner identification, business formation documents, merchant processing statements, and signed addenda for high-risk products. Provide clear PDFs to avoid delays during underwriting.
How should bank account details be formatted?
Enter the ABA routing number as nine digits (no dashes or spaces) and the full account number exactly as the bank shows. Upload a voided check or bank letter for verification. Incorrect formats result in failed ACH settlement and delays.
Can a remote notary be used?
Possibly. Remote Online Notarization is permitted in most states, but rules vary by jurisdiction. RON requires identity proofing, real-time audio-video recording, and retention of notarization logs. Confirm your state's notary commission rules before relying on RON for merchant agreements.
Does the application require notarization or witnesses?
Generally no; merchant applications do not require notarization or witnesses unless a sponsoring bank or state rule specifically requires it, or where a power of attorney or escrow arrangement is involved. Check acquirer onboarding checklist and state notary statutes.
What happens if the TIN is incorrect?
If the TIN is incorrect, payers may apply 24% backup withholding on payments and file corrected information returns. Repeated errors can trigger IRS penalties for incorrect filings under IRC §6721, and may require corrected W-9 and new documentation.

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