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The need for automated onboarding

But that's just the front end of the process. Once a merchant
application is complete, it moves into underwriting, and
most ISOs have relationships with three or more processors
to handle a spectrum of risk profiles. This frequently
results in more questions to the merchant because each
processor will have slightly different requirements or,
in some cases, will require yet another application to be
completed.

Complex underwriting
Underwriters also want bank statements, creating yet
another "ask" to the merchant. But this is also far from a
standard set of requirements. Some may want two months
By Tom Byrnes of statements, but would really take one, while others want
LedgerPay to see a far greater set of documentation, such as three
or more bank statements plus a copy of the merchant's
nce a sale is closed, the key to every successful business license.
ISO is the ability to onboard the new mer-
chant and get them processing as quickly as While it takes time for an ISO to develop a solid
O possible. It's the lifeblood of every business, understanding of each underwriter's idiosyncrasies and
but what should be a routine, standardized process is fre- be able to anticipate their requirements to smooth out the
quently anything but smooth. process, it's natural for the merchant to view the whole
process as disruptive and painful. One of the oldest adages
Onboarding is a complex process with a number of moving in sales is "time kills deals," and merchants are not beyond
parts, but many ISOs still use a dated, hybrid approach dropping an agreement because it simply takes too long
that starts with a paper application getting scanned and to be able do what they consider to be the "simple" act of
emailed to the new account. running a transaction.
Application headaches Automated onboarding
Since merchant sophistication varies widely, it's all too In an age of technological advances that have touched
common to receive applications that are missing basic and improved operations in nearly every industry, ISOs
fields like a routing number, Federal ID tax number, or have been left behind. What's needed is a standardized,
even the right Social Security number. That requires that digital approach that automates the onboarding process.
someone—either in the office or the agent who signed Standardization simply streamlines onboarding and
the account—call the merchant back and track down the establishes an easy to complete, cloud-based application
missing information so the application can be submitted. online would make updating information faster and easier
for both the merchant, ISO and underwriter alike.
While this works in smaller ISOs, because the problem is
generally isolated and they easily can track a single email, Taken a step further, creating a range of uniform
larger organizations typically outsource support. They are underwriting requirements set by SIC code and/or risk
managing a bigger team of external agents, and resolving profiles would allow a system to anticipate merchant
a larger number of tickets creates a number of challenges. requirements and auto-generate documentation requests
in a more timely manner. Once underwriting is completed,
Difficult tracking the ability to predetermine whether an account needs
only hardware or hardware and software, depending
Basic ticket management is often compounded by an upon how they want to accept payments, would accelerate
inability to track ticket aging, extending both the time deployment phase.
that an issue remains unresolved and the ability to get a
merchant live and processing. Beyond creating a drain on When combined, this type of solution would empower
an organization's efficiency, this has a direct impact on an ISOs to issue automated approvals with the ability to offer
ISO's ability to provide solid support to its accounts ,which MIDs instantly, allowing merchants to begin processing
can lead to reputational damage in the marketplace. the same day. It's a streamlined approach that ISOs don't
simply need but deserve.
Both of these factors can have a direct impact on merchant
satisfaction, leading to a higher percentage of account Tom Byrnes is vice president of marketing at LedgerPay. You can reach
churn due to attrition. him by email at Tom.Byrnes@quisitive.com.
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