Partner Underwriting

There are two variables that dictate how stringently ProPay’s Risk team is going to underwrite the partner you will bring to us.
  1. If the Partner intends to hold liability for the merchants it brings, expect that the partner’s ability to cover potential losses will be thoroughly investigated
  2. If the Partner is going to sell into other partners, then ProPay will expect that those new partners are introduced to us.  We will underwrite each of those partners.
While we certainly don’t want to do business with partners that we can’t trust, the lion’s share of underwriting exists at the merchant level.  Most underwriting of partners is truly an attempt to understand their processes.  How will the partner ensure that folks who sign up on their website, are legitimate?  The partners need to make us comfortable with their ability to prevent fraud.
  Has Software  Merchant Activity Liable How Does Underwriting Work Underwriting checklist
Registered Payment Facilitator x x ProPay will underwrite ProFac, incl. ability to cover potential losses Underwriting checklist - Liable ProFac
ProFac with Liability × × ProPay will underwrite ProFac, incl. ability to cover potential losses Underwriting checklist - Liable ProFac
ProFac (no liability) ×   ProPay will underwrite ProFac Underwriting checklist - ProFac
Merchant Referral Partner     Only basic understanding of partner is required Underwriting checklist - Affiliation
Platform Provider with Liability     ProPay will underwrite provider, incl. ability to cover potential losses Underwriting checklist - Platform
Platform Provider     ProPay will underwrite Provider. Underwriting checklist - Liable Platform
Affiliate Referral partner     Only basic understanding of partner is required Underwriting checklist - Parent Affiliation
 
Sub-Affiliate
(Exists under platform provider)		     Underwriting has already occurred under platform provider. Sub-Affiliate underwriting checklist.
Sub-ProFac
(Exists under referral partner)		 ×   Underwritten independently. Sub-ProFac underwriting checklist.

Merchant Underwriting

ProPay is a platform onto which partners can instantly onboard new merchants.  How we underwrite those merchants will depend on several factors:
  • ProPay manages risk by placing monthly volume limits on merchant processing.  The default for this limit is $10,000.  Partners who ask for higher limits on behalf of their merchants may be expected to collect and provide a lot of information about them.  This information may include both data passed via our onboarding API, as well as physical documents that a partner can pass into our document upload API.
  • Partners who lock down their boarding portal may be able to expect willingness to offer higher than normal limits.
  • Partners who operate in a specific vertical may be able to expect higher limits so long as they are able to prevent signups outside that vertical.
Whenever a partner wants to bring on a new group of merchants, the ASK/DEMAND/COMMIT process is used to establish common ground with the partner.  (The partners will know what to expect from our underwriting team.)

ProPay defines a type of merchant as a "tier"  Each tier is an ASK made by the partner

          - How high will these merchants' monthly limits be set?
          - How quickly can these merchants access their funds?
          - Should our "soft limits" feature be enabled?
          - Will these merchants have access to certain money-movement tools?

ProPay will DEMAND certain behavior during that tier's boarding.

          - What data must be passed into the boarding API
          - What documents must be uploaded immediately after boarding
          - Behaviors on the partner's website
          - Processes that must be followed when transactions are processed

ProPay will Commit to a process for new merchants under the tier.

          - A limit to which we can commit
          - We will clearly spell out how we will review accounts post-boarding.
          - We will describe actions that we might need to take after a post-boarding review.
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