The right onboarding process can be the difference between a successful or disastrous partnership
Merchant onboarding refers to the practice a payment company uses to allow a business to process and manage financial transactions quickly and securely.
Using poor or inefficient practices can result in failed or delayed transactions, increase the risk of fraud, and incur non-compliance fees and penalties.
When it comes to merchant onboarding, you want to use practices that support the business and help it thrive.
Here are a few tips to help ensure your merchant onboarding process is simple, secure, and efficient.Â
Do You Due Diligence
Doing your due diligence means carefully reviewing the company’s financial documents. Verify all submitted information, including the name of the ultimate business owner, if applicable.
This is also the ideal time to gather information about the payment gateways you provide. As a PSP (payment service provider) you want to provide the best service to meet the company’s needs.
For example, a smaller business may only require a single payment authorizing unit. Larger companies with multiple branches will require something more complex.
Run a Risk Assessment
A risk assessment is a vital part of any merchant onboarding process.
You want to consider factors like the type of business, the number of monthly/annual transactions, chargeback history, and whether the company is compliant with all industry standards.
Be prepared to run lengthy background and credit checks. Failing to verify the business’s information can place you at risk for compliance violations.
Some PSPs cover costs associated with information verification, while others include it in their fees. Whichever method you choose, always ensure the client is aware.
Set Up and Integrate The Account
Once the information is verified and the risk assessment is complete, it is time to set up the account. You will need to connect the business, online store, POS (Point of sale) system, or mobile app to your payment gateway.
Since technical help is typically required, it is often easiest if you take care of the setup process.
This way you are onsite if an issue occurs.
Provide Adequate Training
You don’t want to integrate the account and leave the business to figure it out themselves.
Problems will occur and they are usually ones you can avoid with a little training.
You also want to provide all of the necessary equipment. Sometimes it is as simple as installing software to help the business track credit card payments. Other times more complex tools are necessary.
As the payment service provider, you are also responsible for providing support.
Support can be anything from answering questions to handling customer disputes and ensuring chargebacks go through smoothly.
Continue to Optimize the Process
As technology advances, you want your payment processes to stay up-to-date.
Continuously monitoring the process and optimizing the system will help ensure payments are going through smoothly and efficiently.
Some of the steps you may need to take include updating existing software and security protocols.
Your goal as a PSP is to constantly be there for your customer.
