As the payment facilitator, Payrix serves as a financial services provider to you and your Merchants. Therefore, we are responsible to maintain certain legal and regulatory requirements for any Merchant using our platform, ensuring a safe and secure environment is being maintained for Merchants to be able to process transactions and send funds to their bank account. This includes validating aspects of the Merchant’s business, their personal information, and their industry prior to when their account is approved to process payments.

The underwriting process is primarily focused on the following key elements of the Merchant’s application and the data provided in signing-up for Payrix:

  • Validating the Merchant’s business - ensures the Merchant’s submitted business data (e.g. address, website URL etc) is accurate and the scope of their goods/services is compliant with legal and regulatory guidelines.

  • Validating the owners -  verifies the personal information (e.g. SSN, DOB etc) submitted by the Merchant is accurate and that they aren’t flagged on any government sanctions or payment-industry watchlists.

  • Preventing illegal & fraudulent activity - as the payment facilitator, Payrix is responsible to prevent any Merchants from engaging in illegal or fraudulent activity while using our platform. Some common relevant scenarios include preventing money-laundering (AML), identity theft, fraudulent account takeover etc.  

  • Validating the Merchant’s bank account - confirming that the submitted banking information is valid and that the account is associated with the Merchant’s business and/or owner. This validation process meets industry requirements and helps prevent fraudulent activity.

To maximize efficiency and customization of the onboarding process we offer two unique underwriting structures depending on your portfolio’s industry types and specific needs. You can read about our manual underwriting process and our automated underwriting process on their respective pages.