Merchant account underwriting<br />paysimple.com |  follow @PaySimple | facebook.com/paysimple<br />
 When reviewing an application, underwriters assess the risk associated with the applicant’s business<br />“Referees of ri...
What they’re considering<br />Business type<br />www.paysimple.com |  follow @PaySimple| facebook.com/paysimple<br />
 Industry<br /> Product / service offering<br /> Formation (sole prop, LLC, corporation, etc)<br /> Online vs. Brick & Mor...
What they’re considering<br />Business type<br />Years in business<br />www.paysimple.com |  follow @PaySimple| facebook.c...
Years in business<br />In the underwriter’s view, businesses with long tenures are more stable, so the risk of underwritin...
What they’re considering<br />Business type<br />Years in business<br />Chargeback history<br />www.paysimple.com |  follo...
Chargeback history<br />Extensive chargeback histories are a major red flag for underwriters<br />If the seller doesn’t ha...
What they’re considering<br />Business type<br />Years in business<br />Chargeback history<br />Billing policy<br />www.pa...
Billing policy?<br />www.paysimple.com |  follow @PaySimple| facebook.com/paysimple<br />
Billing policy?<br />After goods or services are rendered<br />www.paysimple.com |  follow @PaySimple| facebook.com/paysim...
Billing policy?<br />After goods or services are rendered<br />Up to 30 days in advance<br />www.paysimple.com |  follow @...
Billing policy?<br />After goods or services are rendered<br />Up to 30 days in advance<br />Far in advance<br />www.paysi...
What they’re considering<br />Business type<br />Years in business<br />Chargeback history<br />Billing policy<br />Owner ...
Owner/signer credit score<br />Credit score carries a lot of weight in the merchant account underwriting process<br />Some...
Here are some of the things they consider<br />Business type<br />Years in business<br />Chargeback history<br />Billing p...
Processing volumes requested<br />All aspects of the application are weighed against the processing volumes requested<br /...
Other alternatives<br />Upfront reserves<br />Holds<br />Daily fee withdrawal<br />www.paysimple.com |  follow @PaySimple|...
Here are some of the things they consider<br />Business type<br />Years in business<br />Chargeback history<br />Billing p...
Thank you!<br />www.paysimple.com |  follow @PaySimple | facebook.com/paysimple<br />
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Merchant account underwriting

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Brief presentation from PaySimple that explores the world of underwriting for a merchant account.

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Merchant account underwriting

  1. 1. Merchant account underwriting<br />paysimple.com | follow @PaySimple | facebook.com/paysimple<br />
  2. 2. When reviewing an application, underwriters assess the risk associated with the applicant’s business<br />“Referees of risk”<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  3. 3. What they’re considering<br />Business type<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  4. 4. Industry<br /> Product / service offering<br /> Formation (sole prop, LLC, corporation, etc)<br /> Online vs. Brick & Mortar<br />Business type<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  5. 5. What they’re considering<br />Business type<br />Years in business<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  6. 6. Years in business<br />In the underwriter’s view, businesses with long tenures are more stable, so the risk of underwriting the account decreases over time<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  7. 7. What they’re considering<br />Business type<br />Years in business<br />Chargeback history<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  8. 8. Chargeback history<br />Extensive chargeback histories are a major red flag for underwriters<br />If the seller doesn’t have funds available to reimburse the buyer, the underwriting bank is left responsible for the funds<br />charge·back<br /> [chahrj-bak] noun.<br />1. banking - the return of funds by a seller to a buyer's debit or credit card account <br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  9. 9. What they’re considering<br />Business type<br />Years in business<br />Chargeback history<br />Billing policy<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  10. 10. Billing policy?<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  11. 11. Billing policy?<br />After goods or services are rendered<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  12. 12. Billing policy?<br />After goods or services are rendered<br />Up to 30 days in advance<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  13. 13. Billing policy?<br />After goods or services are rendered<br />Up to 30 days in advance<br />Far in advance<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  14. 14. What they’re considering<br />Business type<br />Years in business<br />Chargeback history<br />Billing policy<br />Owner or signer credit score<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  15. 15. Owner/signer credit score<br />Credit score carries a lot of weight in the merchant account underwriting process<br />Sometimes, business financial statements can be reviewed in lieu of a credit check<br />Businesses with multiple partnerscan apply with a different signerif the application is declined dueto credit score<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  16. 16. Here are some of the things they consider<br />Business type<br />Years in business<br />Chargeback history<br />Billing policy<br />Owner or signer credit score<br />Processing volumes requested<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  17. 17. Processing volumes requested<br />All aspects of the application are weighed against the processing volumes requested<br />Processing volumes indicate:<br />Total dollar amount of funds processing<br />Maximum single transaction amount<br />It is common for new businesses to start with lower volumes at first in order to build aprocessing history<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  18. 18. Other alternatives<br />Upfront reserves<br />Holds<br />Daily fee withdrawal<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  19. 19. Here are some of the things they consider<br />Business type<br />Years in business<br />Chargeback history<br />Billing policy<br />Owner or signer credit score<br />Processing volumes requested<br />www.paysimple.com | follow @PaySimple| facebook.com/paysimple<br />
  20. 20. Thank you!<br />www.paysimple.com | follow @PaySimple | facebook.com/paysimple<br />
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