A merchant in Preczn progresses through distinct stages before they can process payments. This guide explains each stage, what must happen to advance, and how the merchant's record evolves throughout the lifecycle.

Lifecycle Overview

flowchart LR
    A[Created] --> B[Onboarding]
    B --> C[Ready to Process]

Stage	Description	Can Process Payments?
Created	Merchant record exists in Preczn	No
Onboarding	Submitting to connections for underwriting	No
Ready to Process	At least one connection approved	Yes

Stage 1: Created

When you create a merchant through the Dashboard, API, or import, Preczn generates a merchant record with a unique identifier using the mid_ prefix (e.g., mid_01abc123def456).

At this stage:

The merchant record contains basic business information
No connections are configured
The active field defaults to true

However, even with active: true, the merchant cannot process payments yet—they need at least one connection with Active status.

What's next: Configure connections and begin onboarding.

Stage 2: Onboarding

Onboarding prepares the merchant to process payments through one or more fintech connections (payment processors). Each connection the merchant needs to use requires its own onboarding process.

Connection Status Flow

Each connection tracks its own status independently. A merchant can have multiple connections at different stages simultaneously.

flowchart TD
    U[Unconfigured] --> R[Requirements]
    R --> RD[Ready]
    RD --> Q[Queued]
    Q --> S[Sent]
    S --> UW[Underwriting]
    UW --> A[Active]
    UW --> RFI[RFI]
    RFI --> UW
    UW --> REJ[Rejected]
    UW --> ERR[Error]

Connection Statuses

Status	Description	Action Required
`Unconfigured`	Connection lacks valid credentials	Configure connection credentials
`Requirements`	Missing required merchant data	Collect missing data fields
`Ready`	All requirements met, not yet submitted	Initiate onboarding
`Queued`	Submission initiated, awaiting processing	Wait for processor
`Sent`	Data transmitted to processor	Wait for response
`Underwriting`	Processor reviewing application	Wait for decision
`RFI`	Request for additional information	Provide requested data
`Active`	Approved and ready to process	Merchant can process payments
`Error`	Issue during onboarding	Review error details
`Rejected`	Application declined	Review rejection reason
`Disabled`	Merchant disabled by processor	Contact processor
`Closed`	Account closed	N/A
`Cancelled`	Onboarding cancelled	N/A

Multiple Connections

Merchants can be onboarded to multiple connections. Each connection progresses through its status lifecycle independently. For example, a merchant might be:

Active on Stripe Connect (approved)
Underwriting on Payrix (pending review)
Requirements on a third connection (missing data)

The merchant can begin processing payments once at least one connection reaches Active status (merchants are active: true by default).

Stage 3: Ready to Process

When a connection reaches Active status, the merchant can process payments. Since merchants default to active: true, no additional steps are required to start processing.

At this stage:

At least one connection shows Active status
The merchant's active field is true (default)
Transactions can specify the connection directly, or use an assigned plan for automatic routing

After Onboarding

Processing Plans (Optional)

Plans define routing rules and which connections handle different payment types. Assigning a plan enables automatic routing without specifying the connection in each transaction request.

Without a plan, include the connection directly in each transaction request.

Enabling and Disabling

Merchants default to active: true and can process payments as soon as a connection is approved. To control go-live timing or temporarily suspend a merchant, you can set active: false.

See Enabling Merchants for details on enabling, disabling, and prerequisites.

Lifecycle Quick Reference

Question	Answer
When does a merchant get an ID?	Immediately upon creation (`mid_` prefix)
What's the default `active` value?	`true` — merchants are active by default
What's required to process payments?	`active: true` + at least one `Active` connection
Is a processing plan required?	No — transactions can specify the connection directly
Can a merchant have multiple connections?	Yes, each with independent status

Merchant Lifecycle