Underwriting Packet: High-Risk Merchant Account Application¶

Research Relay LLC -- RUO Peptides & Research Chemicals E-Commerce

Last updated: 2026-02-26

Overview¶

High-risk merchant account underwriting is significantly more rigorous than standard processing applications. This document provides a complete checklist of documents, website compliance requirements, and preparation strategies for Research Relay LLC's card processing application.

Expected timeline: 1-4 weeks from submission to approval (can be as fast as 1-2 business days with complete documentation at some processors like Instabill).

Document Checklist¶

Business Formation & Identity (Required)¶

Articles of Organization -- California LLC formation documents
EIN Confirmation Letter -- Official IRS document (CP 575 or 147C)
California Statement of Information -- Current filing from CA Secretary of State
Operating Agreement -- LLC operating agreement showing ownership structure
Government-Issued Photo ID -- Unexpired driver's license or passport (front and back) for all principal owners and signers
Proof of Business Address -- Recent utility bill (within 60-90 days) in the business name, or lease agreement
Domain Ownership Verification -- WHOIS record or registrar confirmation showing Research Relay LLC as domain owner of research-relay.com

Financial Documents (Required)¶

Voided Business Check -- From the business bank account where deposits will go
3 Months Business Bank Statements -- Showing adequate operating capital and cash flow. If newly opened, provide personal bank statements from owner plus business account opening confirmation.
Proof of Operating Capital -- Processors want to see you can absorb chargebacks and reserve requirements. Minimum $5,000-$10,000 liquid recommended.
3 Months Processing Statements -- If any prior card processing history exists. For a new merchant, this is waived but weakens the application.

Product & Compliance Documents (Required)¶

Certificates of Analysis (COAs) -- For every product sold. Underwriters frequently request these during review. COAs from third-party labs carry more weight.
Supplier Invoices -- Proving product sourcing and authenticity
Product Catalog / Price List -- Complete listing of all RUO products
RUO Disclaimers -- Written documentation of research-use-only positioning

Certifications (Strongly Recommended)¶

LegitScript Healthcare Merchant Certification -- Not technically required by all processors, but dramatically improves approval odds and rate terms.
Registration fee: $950 (increased from $500)
Per-transaction fee: $0.10 + 10 basis points on volume
Multiple tiers: Category A (single facility, no website), Category B (most merchants), Category C (complex models)
Note: LegitScript views "research chemical" sellers with extra scrutiny. Their position is that "not for human consumption" disclaimers can actually be a red flag. See "Presenting the Business Honestly" section below.

Website Compliance Checklist¶

Underwriters WILL review the live website before approval. The site must be complete and compliant BEFORE submitting the application. Submitting with an incomplete or non-compliant website is the fastest way to get rejected.

Required Website Elements¶

Website Red Flags That Cause Rejection¶

These will almost certainly result in application denial:

Product descriptions suggesting human consumption or therapeutic use
Before/after photos or testimonials implying health benefits
Dosing instructions, injection guides, or administration guidance
Language like "benefits include...", "used for...", "helps with..."
"Buy peptides" or similar consumer-oriented purchase language
Social media content showing personal use or bodybuilding context
Blog posts about personal results or health improvements
Missing or hidden refund policy
No physical business address
Generic or incomplete "About Us" page

Website Best Practices for Approval¶

Use language like "available for laboratory research purposes"
Reference scientific literature and CAS numbers for compounds
Present products in a clinical/laboratory context
Use institutional-style photography (lab equipment, vials, lab settings)
Include buyer qualification language (e.g., "qualified researchers")
Prominent "For Research Use Only" banners or badges
Link to COAs from product pages
Separate blog content focused on research methodology, not product benefits

Presenting the Business Honestly¶

The Core Challenge¶

Research Relay sells legal products for legitimate research purposes. The challenge is that this category sits in a gray area where:

Card networks classify it adjacent to pharmaceuticals
LegitScript notes that "not for human consumption" disclaimers can paradoxically be a red flag (they see many sellers using this language as cover for consumer sales)
Underwriters are trained to look for consumer-facing patterns

Honest Positioning Strategy¶

The goal is NOT to misrepresent the business. The goal is to present the business accurately while addressing underwriter concerns proactively.

Business Description Template:

Research Relay LLC is a California-based e-commerce company specializing in the sale of Research Use Only (RUO) peptides and research chemicals to qualified researchers and laboratories. All products are accompanied by Certificates of Analysis from third-party laboratories. Products are clearly labeled "For Research Use Only -- Not for Human Consumption" in compliance with applicable regulations.

The company operates exclusively online at research-relay.com, serving academic researchers, independent laboratories, and qualified research professionals. Average order value is $XX-$XXX. The business does not make health claims, provide dosing guidance, or market products for therapeutic purposes.

Research Relay maintains strict compliance with FDA labeling requirements and clearly communicates the research-only nature of all products throughout the customer experience, from product listings through checkout and order confirmation.

Key phrases to include in applications: - "Research Use Only" (not just "not for human consumption") - "Certificates of Analysis from third-party labs" - "No health claims or therapeutic marketing" - "Qualified researchers and laboratories" - "FDA-compliant labeling"

What NOT to Say¶

Do not call products "supplements" or "nutraceuticals" -- they are research chemicals
Do not reference customer health outcomes
Do not mention bodybuilding, anti-aging, or weight loss communities
Do not describe products as "safe" or "effective" (those are therapeutic claims)
Do not reference competing pharmaceutical products

Underwriting Timeline Expectations¶

Stage	Timeline	Notes
Document preparation	1-2 weeks	Gather everything before applying
Application submission	1 day	Online forms at most processors
Initial review	1-3 business days	Automated checks, website review
Underwriting review	3-10 business days	Manual review of documents and risk
Approval / conditional approval	1-2 business days	May request additional documents
Account activation	1-3 business days	Gateway credentials and test transactions
Total (best case)	1-2 weeks	Complete documentation, clean website
Total (typical)	2-4 weeks	Some back-and-forth on documents
Total (worst case)	4-8 weeks	Additional verification, conditional terms

Factors That Speed Up Approval¶

Complete documentation submitted with initial application
Compliant, live website with all required elements
LegitScript certification already in place
Prior processing history with clean chargeback record
Strong bank balance showing operating capital
Clear, professional business description

Factors That Slow Down Approval¶

Incomplete documentation requiring follow-up
Website with red flag content
No processing history (new merchant)
Low bank balances
Inconsistent information across documents (names, addresses, etc.)
Applying during high-volume periods for the processor

Common Rejection Reasons¶

Website implies human consumption -- The single most common rejection reason. Any language, imagery, or context suggesting products are for human use.
Insufficient operating capital -- Processor needs confidence you can absorb chargebacks and rolling reserves without going insolvent.
Inconsistent documentation -- Names, addresses, or ownership details that do not match exactly across all submitted documents.
Missing COAs -- Certificates of Analysis are expected for every product. Without them, underwriters cannot verify product legitimacy.
No business bank account -- Processing to a personal account is a red flag. Must have a dedicated business banking relationship.
Prior MATCH listing -- If any principal owner has been MATCH-listed (terminated by a previous processor for cause). Not applicable for new merchants but worth noting.
Category restrictions -- Some acquiring banks simply will not touch research chemicals regardless of compliance. The ISO needs to find the right bank partner.
Excessive requested volume -- Requesting $100K/month processing as a brand-new merchant with no history raises flags. Start with a modest limit ($25-50K) and grow from there.

New Merchant Considerations¶

As a new merchant with no card processing history, Research Relay faces additional scrutiny:

Challenges¶

No processing history means no track record to demonstrate low chargebacks
Processors have no data points for risk assessment
Higher reserve requirements are almost certain (expect 10% vs. 5% for established)
Lower initial processing limits ($25-50K/month typical)
Longer underwriting timeline possible

Mitigation Strategies¶

Start with modest volume requests -- $25,000/month initial cap is realistic and shows you understand the ramp-up process
Offer additional collateral -- Some processors accept a security deposit in lieu of higher rolling reserves
Emphasize BTC + ACH history -- If you have transaction history from BTC and ACH rails, reference this as evidence of business activity and customer satisfaction
Highlight COAs and compliance infrastructure -- Demonstrate that you have invested in quality control and regulatory compliance
Provide personal financial statements -- If business financials are thin, strong personal financials from the guarantor help

Personal Guarantee¶

Almost all high-risk processors require a personal guarantee from the LLC's principal owner. This means:

The owner is personally liable for chargebacks, fees, and reserve shortfalls
Credit check will be run on the guarantor
Personal financial statements may be requested
This is standard for the industry and not negotiable for new merchants
After 12-24 months of clean processing, some processors will remove the personal guarantee requirement

Application Strategy: Step by Step¶

Week 1: Preparation¶

Ensure all documents in the checklist above are gathered and consistent
Audit the website against the compliance checklist
Fix any website red flags
Prepare the business description using the template above
Verify bank account has adequate operating capital visible

Week 2: Apply¶

Submit applications to Easy Pay Direct and Durango Merchant Services simultaneously
Include ALL documents with initial submission (do not wait for them to ask)
Note in the application that you are pursuing LegitScript certification (if not yet certified)
Request Authorize.net as preferred gateway (MedusaJS compatibility)
Request modest initial processing volume ($25,000/month)

Week 3-4: Follow Up¶

Respond to any underwriter questions within 24 hours
Provide any additional documents requested immediately
If asked to modify website language, do so promptly
Keep detailed records of all communications

Week 4+: Activation¶

Receive gateway credentials
Run test transactions in sandbox/test mode
Implement MedusaJS payment provider integration
Go live with small transaction volumes
Monitor chargeback rates from day one

LegitScript Certification: Deep Dive¶

Should Research Relay Get LegitScript Certified?¶

The complicated answer: LegitScript certification dramatically improves approval odds and rate terms. However, LegitScript is openly skeptical of "research chemical" sellers and has stated that "not for human consumption" disclaimers can be a red flag.

LegitScript's position on research chemical peptide sellers: - They view many RUO peptide sellers as effectively selling products for human consumption under the guise of "research use" - They look for safeguards against consumer sales (e.g., requiring proof of research credentials, requiring buyers to request quotes rather than direct online purchase) - A fully consumer-facing e-commerce site selling peptides with a shopping cart may face scrutiny even with RUO disclaimers

Options:

Apply for LegitScript certification -- If approved, this unlocks the best processing terms and broadest processor selection. Cost: $950 registration + per-transaction fees. Risk: They may not certify a research chemical e-commerce site.
Apply to processors without LegitScript -- Durango, PayDiverse, Instabill, and AllayPay do not require LegitScript. Rates will be higher and reserves stiffer, but approval is achievable with strong compliance documentation.
Hybrid approach -- Apply to processors that do not require LegitScript while simultaneously pursuing certification. If certification comes through, use it to negotiate better terms.

Recommendation: Pursue the hybrid approach. Apply to Durango (no LegitScript requirement) immediately while beginning the LegitScript application process. If LegitScript certifies Research Relay, pivot to Easy Pay Direct for better terms and multi-MID load balancing.

MCC Code Considerations¶

Research Relay will likely be classified under one of these Merchant Category Codes:

MCC	Description	Likelihood	Notes
5169	Chemicals and Allied Products, NEC	Most likely	Broadest fit for research chemicals
5047	Medical/Dental/Ophthalmic Equipment & Supplies	Possible	If positioned as lab supplies
5085	Industrial Supplies, NEC	Possible	Generic industrial classification
5999	Miscellaneous Specialty Retail	Unlikely	Catch-all, but draws less scrutiny

The MCC is assigned by the acquiring bank, not chosen by the merchant. However, you can discuss preferred classification with your ISO. MCC 5169 (Chemicals, NEC) is the most honest and defensible classification for a research chemical supplier.

Important: The MCC affects interchange rates, card network monitoring program enrollment, and which compliance programs apply. Do not try to get classified under a lower-risk MCC -- this is misrepresentation and can result in immediate termination and MATCH listing.

Descriptor Requirements¶

The billing descriptor (what appears on the customer's credit card statement) must be:

Clear and recognizable -- Customer must be able to identify the charge
Match the business name -- Should reference "Research Relay" or similar
Not misleading -- Cannot use a descriptor that hides the nature of the business
Consistent -- Same descriptor across all transactions

Recommended descriptor: RESEARCH RELAY LLC or RESEARCHRELAY.COM

Avoid: Generic descriptors like "ONLINE STORE" or descriptors that reference specific product names. The descriptor should identify the merchant, not the product.

A clear descriptor is one of the most effective chargeback prevention tools. When customers recognize the charge on their statement, they are far less likely to file a dispute.