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Automated & Instant Underwriting Process
To simplify and speed up the onboarding process, we’ve developed an automated underwriting solution that instantly validates and approves eligible new Merchants. We use many innovative technologies to verify a new Merchant application meets our standard underwriting and compliance requirements.
After your portfolio is approved for automated underwriting, all new Merchant accounts you submit will qualify for instant verification and you will receive a Boarding Status response within 30 seconds of the Merchant submission. This means your portfolio’s Merchant accounts validate almost instantaneously and, based on the information submitted, the account may be eligible for immediate approval (Successfully Boarded) to process payments as they sign up.
Note
Qualifying for automated underwriting does not guarantee that your Merchant accounts will be instantly approved. If certain elements of the Merchant application are flagged during the automated underwriting process, the Boarding Status will instantly change to Not Ready, and the Payrix Underwriting team will follow up directly and request additional information as necessary.
Caution
For your new Merchants to access automated underwriting, your portfolio must receive prior approval from the Payrix Underwriting Team. All new clients will initially submit new Merchants via our manual underwriting process, which will determine the viability of automated underwriting for your portfolio.
After this initial manual underwriting period, information relating to the business validation, data integrity, and payment compliance will be provided to you by the Payrix Underwriting Team to prepare your portfolio for automated underwriting approval.
Merchant Instant Activation
We are committed to elevating our technology and refining our processes to exceed customer expectations. That is why our team has worked hard on an innovative feature to enhance the boarding process. We are thrilled to unveil our latest advancement in underwriting policies: Instant Merchant Activation.
Instant Merchant Activation.pdf
Instant Activation FAQs
The Instant Merchant Activation FAQs cover the purpose, benefits, and impact of instant Merchant activation. Discover how this solution simplifies the onboarding process, enhances profitability, and conforms to industry standards.
Instant Merchant Activation FAQs.pdf
Automated Underwriting FAQs
What is Instant Merchant Activation?
Instant Merchant Activation is a risk onboarding process that allows Partner merchants to begin transacting after passing initial risk checks. While further risk validations are ongoing, merchants can start transacting. Merchants will receive disbursements for a period while gathering documents needed to complete the final approval.
Why is Instant Merchant Activation necessary?
Instant Merchant Activation streamlines the onboarding process, enabling merchants to start transacting sooner while risk checks continue. It is a balance between risk mitigation and operational efficiency.
What are the key benefits of Instant Merchant Activation for Partners?
Faster onboarding: Merchants can start transacting without delays associated with completing all risk checks.
Revenue generation: Partners can earn revenue from transactions while risk checks are underway.
Why should I be excited about Instant Merchant Activation?
Increased revenue opportunities: It allows merchants to generate revenue sooner, benefiting both Partners and merchants.
Streamlined onboarding: It reduces friction in the onboarding process, making it more efficient for all parties involved.
Alignment with industry standards: It reflects a progressive approach to onboarding that is in line with broader industry trends.
How does the reserve hold work?
Merchants can process transactions and will continue to receive disbursements while gathering the necessary documents for final approval.
What is the difference between Auto-Boarding vs Auto-Approval?
Before the release of Instant Merchant Activation, Payrix mainly used an auto-approval strategy where if the account was automatically boarded, it was fully approved.
By increasing our capabilities to support an auto-board strategy, our Underwriting team can clear specific items without any merchant or partner interaction. Even if additional documents or information is needed, the merchant can process and fund for a period while the items are cleared up.
If red flags are discovered during the Instant Merchant Activation process, an Underwriter may act on the account by blocking activity until those red flags are cleared or the account is shut down.
How does Instant Merchant Activation impact my merchants?
Instant Merchant Activation reduces the time it takes to onboard your merchants, allowing them to instantly begin transacting and receiving disbursements.
Why should I want my merchants to auto-board?
When your merchant auto-boards, they can begin transacting and generating revenue for your platform immediately.
What information is required for auto-boarding with Instant Merchant Activation?
The Underwriting team will contact you with more details if additional information is needed to move your merchant to full approval.
How does Instant Merchant Activation affect the time it takes merchants to onboard?
When documentation is needed, the boarding process can take a few days and can result in delays in the ability to process or receive disbursements. Instant Merchant Activation allows immediate boarding, payment processing, and disbursements while your merchant gathers the necessary documentation to complete the process.
Are there any specific requirements or qualifications for merchants to be eligible for auto-boarding?
No.
How can I communicate the reserve holds and the Instant Merchant Activation process to my merchants?
Instant Merchant Activation is an industry-standard practice to expedite onboarding while ensuring security. Holds are temporary and necessary for risk management purposes. Advise your merchants that they can prevent the need for any holds or reserves by providing documentation as soon as possible. However, if they need additional time to gather documentation, disbursements may be paused to ensure compliance with regulatory or tax requirements.
How can I address concerns about merchants transacting during ongoing risk checks?
Emphasize the benefits of Instant Merchant Activation, such as faster revenue generation and reduced onboarding delays. Reassure your merchants that Instant Merchant Activation is a standard industry practice that balances risk management with operational efficiency. Additionally, let them know that their account activity is constantly monitored to ensure the platform remains safe and secure.
How do I get started?
There is no opt-in option, everyone is automatically enrolled.
Are there any costs or fees associated with auto-boarding for our merchants?
No. There are no additional fees, Instant Merchant Activation is built into the autoboarding process.
How does Instant Merchant Activation integrate with our existing systems and processes?
Instant Merchant Activation integrates seamlessly into the existing onboarding process.
How are risk and security measures affected by Instant Merchant Activation?
Instant Merchant Activation is used in low-risk scenarios in which the merchant is likely to have documentation readily available to mitigate the risk, such as EIN or DOB requirements.
How does Instant Merchant Activation help us stay compliant with regulations?
Instant Merchant Activation allows merchants to process and receive disbursements for a brief time while final approval is completed. If documentation is not received within the outlined period, disbursements will be paused until documentation is provided and validated.
What support is available for Partners navigating Instant Merchant Activation?
Account managers are prepared to educate you on Instant Merchant Activation.
Additional Resources
Use the following articles for additional information on related subjects to Merchant Instant Underwriting: