There is a button on the merchant details page to activate a merchant as PSP only.
This button will only be visible to users who have the compliance approver options in their role.
The button will also only be visible if the merchant has not already been approved, has completed at least the first two pages of on-boarding, and does not have any aggregated accounts attached.
When adding the terminals, these do not need to be added in a disabled state. They can be directly added as enabled – as until the merchant is activated, they cannot be used anyway.