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Merchant Risk Prevention
In partnership with Payrix, Partners have a unique opportunity to work closely with a group of experts in Merchant Risk to keep their SaaS platform safe and secure. Without controls in place, a Partner could be in a position to experience reputational or regulatory scrutiny and could experience financial loss associated with fraud or credit risk.
You can see quick tips to minimize potential merchant risk below or in our one-pager:
Payrix_TransactionRisk_RiskyMerchants.pdf
Use the following criteria to screen merchants before completion of boarding:
Identity
How well does the partner know this merchant?
The following are examples of ways the Partner can review the Merchant’s identity:
Video sales.
Validate phone numbers by calling.
Check Secretary of State website for business documentation.
Request identification documentation (such as driver’s license).
Review the company website.
Visit on site.
Intent
Does the merchant’s business align with the nature of the partner?
The following are examples of ways the Partner can review the Merchant’s intent:
Review the company website.
Request merchant’s business plan.
Conduct a public records search to determine if the business owner has risky background activities.
Business Model
How does the merchant’s business function?
The following are examples of ways the Partner can review the Merchant’s business model:
Review the type of business model the merchant conducts (such as retail, subscription, leasing/renting, or service).
Review how the merchant expects to receive payment (Card Present, Card Not Present, or ACH).
Review how the merchant responds when consumers are dissatisfied.
Financial Stability
Is the merchant able to support the cost of doing business?
The following are examples of ways the Partner can review the Merchant’s financial stability:
Request and analyze financial statements, such as the following: Balance Sheet, Income Statement, and Cash Flow Statement.
Request processing statements and evaluate ratio of returns and disputes.