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Taking the Pain and Risk Out of Merchant Onboarding


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The underwriting process for merchants, especially those who are new to the space, has been anything but easy. Merchant onboarding applications involve the tedious collection of paperwork and process of getting accounts approved. But in today’s digital world, automated underwriting technology can be used to speed up the process, provide better data, and ultimately help banks and other financial institutions make better decisions. At the same time, it extends payments to micro-merchants who may have otherwise not been eligible.

On Tuesday, July 8th, MPD’s CEO Karen Webster hosted a live digital discussion with Recombo’s Reed Clayton, Vice President Electronic Payments and Banking, and Peter Fitzpatrick, author of the “Ultimate Guide to Automated Merchant Boarding,” to highlight how automated underwriting molds a quicker, safer, and less costly merchant onboarding process.

This discussion covered:
- How to build a digital application, automated workflow, and risk scorecard to process merchant applications faster while maintaining proper risk levels and anti-fraud requirements
- How to increase your adherence to compliance regulation.

Published in: Business, Economy & Finance
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Taking the Pain and Risk Out of Merchant Onboarding

  1. 1. Taking the Pain (and Risk) Out of Merchant Onboarding Tuesday, July 8th, 2014
  2. 2. Presenters & Host Reed Clayton VP ePayments & Banking Recombo Peter Fitzpatrick Author Karen Webster CEO MPD
  3. 3. POLL At your organization, how long does it take to board the average merchant? – Under an hour – Hours – Days – Weeks – I’m not sure
  4. 4. 3-5 Days Square Stripe PayPal Traditional Acquirer 5 minutes 5 minutes 5 minutes Merchant Boarding Timeframe
  5. 5. POLL At your organization, how much does it cost to board a merchant? – Less than $50 – Between $50 - $200 – More than $200 – I’m not sure
  6. 6. Merchant Boarding Cost Per Merchant
  7. 7. Software companies have disrupted merchant acquiring
  8. 8. Beat the disruptors: Provide the same experience without compromising adjudication standards
  9. 9. Use automation to do the same adjudication you do today, in less than 15 minutes
  10. 10. How to beat the disruptors Automate your boarding process 1. Build digital applications 2. Build a rules-based engine 3. Build a risk scorecard Take a risk-based approach to adjudication 1. Determine high, medium, and low risk products 2. Determine high, medium, and low risk regions
  11. 11. Mistakes identified working with the world’s largest acquirers 1. The one trick pony: Building product- specific boarding processes that can’t be scaled across verticals, product lines and regions 2. Being too dependent on the development team: Digital applications that aren’t flexible enough to be managed by the business unit
  12. 12. Build or Buy? • Build in house • Requires process & technology expertise • Commonly run over budget and over time • Can make mistakes noted previously • Specialized technology on the market • Agreement Express: rapid customer onboarding platform • IBM or Oracle: BPM platforms • Many point solutions that can be combined
  13. 13. POLL What is your organization’s biggest pain point related to merchant boarding? – Time to board – Cost to board – Scalability of process or team – Inconsistent risk adjudication or compliance standards – None of the above
  14. 14. POLL How does your organization prioritize the pursuit of a solution? – High: we’re looking to solve it now – Medium: we’ll be working on it over the next 12 months – Low: we’ll address it sometime in the next 12 – 18 months – Very low: it’s not on the radar
  15. 15. Check your email shortly for your free copy: The Risk Executive’s Guide to Automated Underwriting Thank You for Attending
  16. 16. Questions? Type your questions into the chat panel. Reed Clayton VP ePayments & Banking Recombo Peter Fitzpatrick Author Karen Webster CEO MPD