In general, merchant onboarding to an acquiring bank can take up an enormous amount of time, due to reams of paperwork that need to be filled out. One important way to smooth out the process is to make sure your application contains all the critical information the bank will need in order to process your application in a timely manner.
From a legal perspective, it’s essential to prove that your business follows all local laws and regulations. Certain types of products are subject to more regulation than others, which can vary by country. Therefore, in order to speed up the underwriting process, we recommend that you submit all business-related licenses in your possession.
Additionally, when you are asked to fill in certain information about your business, ideally you should provide all the details in full. For example, with regards to the company name, fill in the full legal name, including the type of entity it is (e.g., Ltd.).
With these points in mind, here are five top tips to help you complete the perfect merchant application:
- Business model transparency: When submitting an application, business model transparency is key. To start off on the right foot with clear communication between all parties, all relevant information should be provided up front. In case a merchant website is under construction or in beta stage, it’s a good idea to provide the acquirer with a business plan or access to the beta website.
- Merchant risk procedures and policies: Make sure to highlight internal AML and fraud policies together with other risk mitigating policies when applying. When a merchant institutes appropriate policies and procedures to mitigate transaction risk, this can score points with the acquirer, which could lead to lower collateral requirements.
- Cardholder and Affiliate KYC checks: Existing cardholder and KYC check procedures should be highlighted at the onboarding stage. Sound KYC checks on both cardholders and affiliates leave less room for fraudulent transactions.
- Transaction Monitoring Solutions: A good merchant who wants to keep up to date and have a sound transaction management system should consider 3rd party services that provide solutions for:
- Monitoring transactions for any issues or problems.
- Provide transaction analysis to determine risk exposure.
- Managing fraud and chargebacks in relation to the acquirer and card schemes thresholds.
- Service fulfillment period: Merchants with more than one fulfillment period arising from different services offered should provide a split in expected volumes by fulfillment period. For example, in the gambling space, volumes by percentages are split between Casino, Poker, Lottery etc. and their respective fulfillment periods.
In today’s online environment, speed is crucial to success. This is why we’ve developed our onboarding API. The Credorax Onboarding API fully supports merchants from all EEA countries. It enables PSPs to quickly provide their merchants with Credorax benefits – including flexible commercial models and multi-currency processing and settlement – in a completely secure environment. The API is scalable for up to tens of thousands of merchants.
When it comes to onboarding, we can conquer the paperwork mountain with efficiency and the right information. Let us know if you have any other tips on how to speed up this process.