Automated & Instant Underwriting Process

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 utilized an autoapproval strategy where if the account was automatically boarded, it was fully approved.

Increasing our capabilities to support an auto-board strategy allows our risk team to clear specific items without any merchant or partner interaction, or even if additional documents or information is needed, the merchant can process & 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 may 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?

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.