How BOLD Provides Greater Control and Financial Gain Through Payment Processing Services

How BOLD Provides Greater Control and Financial Gain Through Payment Processing Services

by | Sep 14, 2020

At BOLD, we strive to provide our partners with as much information, control, and features as possible. In the following blog post, we discuss what makes us unique and how partnering with us can provide your company with a larger financial gain than other processors. 

CAN YOU READ THE FINE PRINT?

Growing up, did you ever see the 1968 film, Chitty Chitty Bang Bang? Do you remember how the “Child Catcher” lured the children with free lollipops and ice cream? As an audience member, it was clear that taking the so-called “free” candies was not a wise move, but the children didn’t see it as that simply because they were naïve. 

Have you ever wondered at what point in time, in our young adult life, did we start seeing the bigger picture? Nowadays, we begin to notice strategies and tactics intertwined in a sales pitch, we learn to read the fine print, and realize that nothing is technically free in life. However, are you able to catch when you are being lured into business deals when it comes from your processor? 

THE THREE T’S TO EXCELLENT DEALS WITH BOLD

Before we dive into the nitty gritty, let’s take a look at what makes an excellent deal.

First, we know that every deal takes a life of its own. There are some that are going to make sense sticking with your processor. While others, it’s obvious that the wiser move is to collaborate with your partners. Secondly, as a dealer, you have to look at two things: buy rates and revenue share. Naturally, it is a case by case situation, but in examining the deals you should be able to notice which works best for your company. 

When you join with BOLD, you will quickly see that we are unique to any other processing company. 

Transparency 

As our partner, you may not receive the amount of free hardware or software fromBOLD that other processors offer. However, when you sign an agreement with us, the profit you receive from the deal makes up for the costs of the incentives other processors give.

Team

At BOLD., we have a team that analyzes merchant statements. In cases where you don’t have the margin to track down rate reviews, our team can show you exactly what the profit numbers and fees are for each of those statements. Not only that, we are prepared to uncover where the profits come from and how to proceed. 

Tools

BOLD offers a tool which allows partners to know and visually see a profit analysis for the merchant (for the partner). It shows the pricing that the merchant had and what other processors had in identical months. This gives you, as the partner, the freedom to determine mathematically what other value adds you are able to bring to your merchants. 

HOW A PARTNER CHANGE CAN RESULT IN A FINANCIAL GAIN

If you’re weighing the pros and cons of working with a partner company versus your processor, let me share a specific example. Perhaps this will help draw a more black and white picture for you.

Let’s say there is a multi-site company who has worked with a partner processor for roughly 3 years, but they are currently looking to save money. The company feels they had a disservice from the payment processor, and are asking a dealer who works alongside payment partners. 

Overall, if we say they have 3-4 chip reader stations at each of their locations, there is going to be a significant cost to make the change across all of their locations if they work with their bank. Realistically, it could be anywhere from $4-6K per location to maintain what the company is getting for free. That comes from adding up the retail value on the hardware; POS, machines, card readers, etc. The total cost from the processor would be around $5K, with an additional $13K to change over. 

However, if the dealer brings the company to BOLD, as a partner processor, the raw cost would be more to switch over but the monthly profit is greater. To give specific numbers, the switch over would cost about $11K, but the monthly profit would be $9K. After a few months and investing in equipment, the change with BOLD would result in larger financial gain than would be expected with a processor. 

TAKE ADVANTAGE OF PARTNERING WITH BOLD

We get it. As an entrepreneur and business owner, you have a lot on your plate. Taking out a magnifying glass to look for where money is being pulled and track down rate reviews is not something you want on your agenda. Our BOLD team wants to help. We want to provide you with as much information, control, and features as possible.

Our BOLD team would love to partner with you. Call us at (877) 900-4511 or fill out the form below.

Meet the Pax A80, the S80’s Predecessor

Meet the Pax A80, the S80’s Predecessor

by | Aug 27, 2020

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It is out with the old, and in with the new as

PAX announces the End-of-Life (EOL) for the PAX S80 Countertop terminal.

The following models will be affected: S80-M0L-063-02EA, S80-M0L-363-02EA, S80-M0L-363-07LA, S80-MOL-364-03EA, S80-M0L-364-04EA and S80-M0L-364-05EA.

IMPORTANT DATES TO REMEMBER

  • December 31st, 2020 is the Final Order Date. PAX will cease taking orders for all S80 terminals.

  • March 31st, 2021 is the Final Ship Date for any orders placed by December 31st, 2020.

  • December 31st, 2020 is the End of Development Date. There will be no new PAX sponsored hardware changes, application enhancements or software development. However, Pax will continue issuing bug fixes for critical issues for 2 years after the final ship date, 31-March-2023.

  • March 31st, 2023 is the End of Service Date. Service and Repair for all the part numbers listed above will be discontinued. PAX will endeavor to repair terminals up until this date, as component availability permits.

New on the Block

Alternatively, PAX offers an Android based A80 SmartDesktop terminal. Below is a comparison chart which shows the differences between the two terminals while highlighting the feature enhancements of the A80.

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As the latest and greatest version of the PAX system, these products meet PCI security standards while also remaining affordable. And as a whole, we believe that these devices set a higher standard simply through their performance. As you begin moving forward and updating terminals, please note that the A80 terminal can only be boarded in a PAX store.

For additional information, please reach out to BOLD Support by calling (877) 515-6464 or fill out the form below.

COVID-19 Effects on Merchant Processing- Dealing with Daily ACH and Reconciliation

COVID-19 Effects on Merchant Processing- Dealing with Daily ACH and Reconciliation

by | Jul 24, 2020

THREE SECTION SERIES:

How COVID-19 Changed Merchant Processing

How Your Merchants can reconcile daily discount using MX Reporting

Best Practices for Boarding Merchants as a Result of COVID 19

HOW MERCHANT PROCESSING REQUIREMENTS AND GUIDELINES HAVE CHANGED

Author: Gary Liu

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It is no surprise that COVID-19 has dramatically impacted merchant processing. In this post, we will take a look at the major elements concerning Daily Discounts versus Monthly Discounts, and discuss ways we can be proactive in a season of uncertainty.

The Definition and Difference between Underwriting and Risk:

Prior to approval, Underwriting monitors incoming applications and analyzes the risk involved when signing with a merchant. Once the merchant is approved, their activity, which could be anything from the type of transaction to its amount or volume, is monitored. This is put in place to ensure that the merchant follows the guidelines they were approved for.

If the amount and volume of a transaction turns out to exceed the amount that was originally approved and red flags are raised, Risk will place a hold on the account. The hold will remain on the account until processors are satisfied with the merchant’s response. 

A Look into Daily Discounts vs Monthly Discounts:

A Daily Discount is when the merchant chooses to pay for their processing fees on a daily basis. Whereas a Monthly Discount is paid at the end of the month. When the merchant pays their fees on a monthly routine, the processor holds all liability until the merchant fees are paid for. However, if a merchant chooses a Daily Discount, it poses a lower risk for a processor because the fees are regained through smaller transactions.

How Underwriting has Changed:

Due to the impact of COVID-19, the risk of merchants shutting down has dramatically increased. As previously stated, merchant processors hold all liability when merchants pay their fees at the end of the month. Noting that these are fees which have already been paid to card brands by the merchant processor, the processors subsequently adopt the risks when a merchant signs up to accept credit card processing. In an attempt to limit any liability risks for processors, merchants are increasingly “being boarded” to Daily Discounts. 

How Risk has Changed:

Knowing that risk will place a hold on an account, there is, understandably, a delay in funding from the merchant processor. Additionally, holds are influenced by ACH Monthly Rejects, which are merchants who fail to pay monthly fees due to a lack of funds or banking issues. 

The effects of COVID-19 have also caused a delay in turnaround time. In regards to bank changes and overall transactions, merchants are being closely monitored. Proactive steps have been put in place to ensure the safety of account changes and to avoid any fraudulent activity. During such a time as this, the goal is to maintain security and make sure that merchants are not acting out of desperation and conducting unapproved sales. After grasping the situation at hand and the plan to move forward, the steps below will communicate how to set up a MX Merchant Account.

HOW YOUR MERCHANTS CAN RECONCILE DAILY DISCOUNT USING MX REPORTING

Author: Robert Copeland

After gaining a stronger understanding of the purpose behind current changes in merchant processing, the next step is to provide your merchants the tools to reconcile. Below, is a walk-through for creating a MX Merchant Account and finding the right reports to set merchants up for success.

Creating an MX Merchant Account

Before merchants are able to log in to MX Express, they will need to create an MX Merchant Account by following the steps below.

  1. Head to mxmerchant.com
  2. Click the “Sign In” link in the top right of the screen
  3. Click the “Create New User” link the right toolbar
  4. Your merchant will need to enter an email BOLD has on file. Once they click “Verify” They will receive an email to create a password and complete the setup.

How to Reconcile in MX Merchant if the merchant is on Daily Discount

Once Logged into MX Merchant, Merchants should click on “Reports” on the left-hand side of the screen

Click on the report called “Batch”. The batch amounts should match to the reports that the POS system or stand-alone terminal provided at the end of the day.

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To compare the batch amount to the amount sent to the merchant’s bank, the merchant will navigate to the ACH Funding report. For merchant’s on Daily Discount, this report will show fees that were taken out of the batch before being deposited into the bank account.

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The Number of rows that you might see will vary based on the card brands that where taken during that day of processing.

The merchant can confirm this amount by adding the fees back into the deposit amount to ensuring the money deposited matches the reports from the POS or terminal.

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BEST PRACTICES FOR BOARDING MERCHANTS AS A RESULT OF COVID 19

Author: Nichole Kazenske

To avoid a delay in merchant application approval, below is a list of ways to be proactive in the boarding process. The goal is to effectively prepare you and your client for Underwriting while maintaining accuracy and account safety.

Avoiding Pends on Merchant Applications

Please be aware that the underwriting department has a 24-hour review period for pending applications prior to their approval, which may result in a delay in processing. To help minimize any frustrations from either party, checking the items below may be useful in expediting the process.

  1. Is the merchant’s credit locked or frozen?
    If their credit is locked, they will need to either a) open their credit during the application process or, b) ask the PRM team to request a verification call if there is push back from the owner. An additional option would be to ask for their most recent credit report.If the owner’s credit is frozen, they will need to unlock their credit based on Federal Regulations.
  2. Has there been a change in the merchant’s home address?
    If the merchant’s home address is new, request a copy of their driver’s license or utility bill.
  3. Is the merchant’s business and/or bank account new?
    If the merchant’s business is new, they will most likely need to provide a business license, articles of incorporation, or pictures of the merchant’s signage. If the signage is not yet installed, a photograph of the business with a sign on the door or window will suffice.If the bank account is new, request a copy of a blank, voided check, or a bank letter. It will likely come back on the GIACT report with No Data available.

Setting Merchant Expectations

I believe it’s safe to say that the days of manual imprinters ruling the world of transactions are long gone. The processing industry has shown tremendous development in terms of technological advancements, pricing programs, accessibility, and so much more. We’ve seen merchants gain knowledge, as well as search engines, such as Google, provide information to those who aren’t as informed. Today, we have the ability to fund a business within 1-2 days, depending on the type of merchant and the sponsor bank affiliated. That said, the weeks spent waiting for carbon copy receipts to be sorted and daily funds to be distributed are finally behind us.

While there have been advances in every sector of our industry, the effects of COVID-19 have regressed those advancements in one category specifically; Underwriting. Concerns over fraud and merchants going out of business have forced the hand of most, if not all, Underwriters to process with caution when it comes to account approvals. As a result, we have also been forced to regress in the way a merchant application is signed, received, and submitted.

Prior to COVID-19, merchant processors were at a point where everything, from background checks to banking verifications, was handled electronically. We had the ability to send an application and request nothing more than a digital signature in return (barring no obstacles with information found through the electronic processes). Our unwelcome guest, COVID-19, has changed that.

Presently, additional detail is being given to each and every applicant and, whether warranted or not, further scrutiny as well. “Did the merchant recently move?” “Why is their banking coming back with this response?” “They don’t qualify for Next Day Funding during these times” and my personal favorite “Please provide a copy of their business license or lease agreement.” We feel your frustration, we hear you, and we want to help.  The purpose for this article is to shed light on best practices and provide the resources to avoid future frustrations.

Until we are certain this pandemic is behind us, here are our recommendations for setting the expectations with your merchants and what to do in light of these changes. Keep in mind, the Underwriting department has an SLA (Service Level Agreement) of 24 hours to review any Pended Application that goes back Under Review. Asking for this additional information up front will minimize your frustration, as well as the merchant’s, and expedite your approvals.

  1. Request documentation to accompany the application. Examples are as follows:
    • A Void Check or Bank Letter – This will verify the routing and account numbers being used for transferring funds.
    • A Copy of a Driver’s License or Utility Bill – This will confirm a recent address change.
    • A Copy of a Business License – In the case that a Business License is unavailable, photographs of the interior and exterior of the business will suffice.
    • Request 2-3 months of previous processing history – This will support a request for Next Day Funding.
    • Request 2-3 months of recent Bank Statements – This will support volume, average and high ticket parameters, and a request for Monthly Discount for billing.
  2. Inquire whether or not the merchant’s credit report is locked or frozen. This request has been in place since the FINCEN Ruling took action in 2018. Underwriting will need to do a check during the approval process. However, immediately after, the merchant can lock it or freeze it again.

We understand that this may feel excessive. Nonetheless, the reasoning behind it is to effectively prepare you and your prospective client(s) for Underwriting, and avoid the need to continually ask them for additional documentation. Ideally, this process will save you time and, subsequently, help you create the margin you need to focus on other important business matters.

Our time is our greatest commodity.  It cannot be manufactured or replicated so, if time is money, then let’s stop wasting one and start earning more of the other.

Additional Resources

Ready to Learn More?

Four Ways Small Businesses are Finding Additional Revenue Sources During an Economic Shutdown

Four Ways Small Businesses are Finding Additional Revenue Sources During an Economic Shutdown

by | Apr 2, 2020

The world has changed, and so has the restaurant and retail industry.

Through no fault of their own, companies are scrambling to find ways to keep their business afloat. Many restaurants have had to completely shift their business model relying on ingenuity to generate revenue when patrons are forced to stay and shelter.

BOLD is keeping a close eye on the events unfolding and the effects on our industry. This includes constant communication with our partners in hopes to share merchant success stories outlined below. While a few of these solutions may seem reactive given the current situation, it is important to consider the long term benefits these will have as consumer buying habits will shift when things get back to normal.

1- ONLINE ORDERING AND CONTACTLESS PICKUP

For restaurants, online ordering has been the lifeline for keeping their doors open during this pandemic. For those who had an online ordering “ecosystem” in place along with a healthy social media presence to promote their service, the transfer was a little easier. Others have had to scramble to fill the demand. Thankfully, many online ordering solution providers have stepped up to offer risk free periods for merchants. Some have even gone completely POS agnostic.

eTab– A stand alone online ordering solution that can be quickly activated and implemented into BOLD’s merchant accounts.

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 Retailcloud– From now until July 2020, merchants can activate their online store for free. After 90 days merchants have the choice to keep the site, upgrade for more products, and add additional features.

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Restaurants are also promoting “Contactless Pickup”. Consumers are looking for as little human interaction as possible. When an online order is placed via phone or online, many businesses are capturing a description of the car used ot pick up the order. The food is then walked to the car and placed on the hood without the customer ever having to get out of the vehicle.

2- CASH DISCOUNTING

COVID-19 has forced many merchants to cut costs and monthly recurring fees. Depending on the merchant, “Cash Discounting” helps merchants eliminate monthly service fees and save hundreds to thousands of dollars a month in processing fees.

BOLD’s Cash Discounting Program eliminates merchant processing fees for businesses by passing the fees onto the customer as a “non-cash adjustment”. It is treated as a discount given to ALL customers who pay with cash, not as a surcharge added to a credit card transaction. Simply put, ALL goods and services are priced with the “Non-Cash Adjustment” and the discount is applied at the point-of-sale for cash purchases.

It is also important to note that due to the situation that we are in, merchants are running many non-qualified (manually keyed) transactions resulting in higher interchange fees. Merchants taking advantage of the Cash Discount Program benefit by avoiding these additional fees.

3- SIMPLIFIED AND FAMILY-STYLE MENUS

Restaurants are running skeleton crews. Many have limited their meal selections to family-style meals in order to streamline the kitchen and limit the food preparation and serving time. Other restaurants, like Tony Baloney’s mentioned below, are finding creative ways to stay afloat by selling kits of their menu items so families can pick up and prepare at home.

Examples of Some Restaurants Shifting to Family-Style Meals

1. A statewide limit on groups is never good for a catering company, so Quinn’s Catering in McDonough, GA found a way to stay active by offering curbside pickup for family meals.

2. Tony Baloney’s in New Jersey changed their online ordering selection to include DIY Pizza Kits that can be picked up.

4- PROTEINS AND ALCOHOL TO GO

The food shortages at grocery stores have given restaurants an opportunity for another short-term revenue source. With proteins hard to come by in the grocery aisles, restaurants are finding some success by offering curbside pickup on proteins and, depending on their city, alcohol.

Examples of How Selling by Bulk is Helping Restaurants

1. Recently, Texas Governor Greg Abbott directed the Texas Department of State Health Services to issue guidance allowing restaurants to sell bulk retail products from restaurant supply chain distributors directly to consumers.

2. Farmers & Fishermen Purveyors, a protein distributor in Atlanta, is now providing home delivery directly to consumers. Prices are similar to what restaurants were paying.

3. In many cities, such as Las Vegas, local governments are adjusting regulations by temporarily allowing restaurants to serve alcohol along with curbside pickup in order to discourage congregation and allow a revenue source for restaurants. 

No one could have expected the country to be in the position we are in. With the Federal Government extending social distancing guidelines until April 30, 2020, it is imperative for restaurants to find solutions to weather this storm.

If you have or need ideas on how you can help your merchants, please call the BOLD Response Team Hotline at (877) 515-1003.

(Part III of III) How BOLD Partner, Gorilla Technologies, Found Success Offering Merchant Services

(Part III of III) How BOLD Partner, Gorilla Technologies, Found Success Offering Merchant Services

by | Sep 23, 2019

The Complete Series

(Part I of III) How To Present Merchant Services to Your POS Prospects

(Part II of III) How To Present Merchant Services to Your POS Clients

The final part of our three part series will highlight a BOLD partner with a success rate of over 95% when it comes to signing their clients up for merchant processing.

Since 2014, Gorilla Technologies has delivered a suite of restaurant solutions including wifi marketing, failover internet, point-of-sale, and merchant processing. Over the years, Josh Carper, VP of Business Development, has crafted his message when introducing merchant services to his clients. “I learned early on that merchant processing is not a favorite discussion topic for business owners,” says Josh. “The research alone can be overwhelming for business owners, so I needed to change my strategy.”

Josh found success by signing his customers up for merchant processing when given the opportunity to build rapport over a topic they enjoy. He came to the realization that restaurant owners are much more excited to discuss the ROI and functionality of a POS system and less interested in any “savings” merchant processing can offer. With this in mind, he formulated a strategy that stands true today:

The Gorilla Tech Approach

“When first meeting with prospects, I rarely mention merchant processing before a meaningful

dialog about point-of-sale,” Josh says. “However, as the meeting is wrapping up, I casually mention credit cards to understand if they are still taking bids. Depending on their reaction, I leave it at that and allow POS to be our main focus over the next 3-4 weeks.” From that point forward, Josh makes sure to never be the first to bring up merchant processing. Rather, he spends his time building rapport and trust with the use of consultative selling.

As the end of the sales cycle nears and he moves closer to closing the deal on POS, he casually mentions merchant processing once again. At this stage, he has spent a good bit of time consulting the restaurant owner on all facets of their business. Many businesses owners look towards Josh for input on various items, and merchant processing is no different.

“I cover the benefits of accepting merchant processing through Gorilla Technologies, but I am never pushy about it. Even though our clients can use any processor, I make it clear that (1) it is much easier for us to support our merchant’s credit cards when they use our service. Not to mention, (2) the restaurant will only have one support number to call eliminating the ping ponging many businesses go through between the POS and merchant processing company.” Josh continues by saying “(3) The fix time is MUCH longer for my clients who use other processors because of the breakdown in communication between Gorilla Technologies and their processor. By using our service, our clients are guaranteed a much faster solution because of the direct relationship I have with the processor.”

Josh has found that many times his client is less worried about credit card rates are and more content knowing they are buying from someone they trust. He has built an extensive client base in the Atlanta market through the use of referrals and word of mouth. ”Trust is key. They buy my POS because they trust me, and merchant processing is no different.”

Underwriting Guidelines: How to Avoid Application Pends

Underwriting Guidelines: How to Avoid Application Pends

by | Sep 12, 2019

Underwriting is typically used in references to banks or insurance companies, but it simply means that an institution will receive a payment and, in exchange, they agree to cover any potential risk. With regards to merchant accounts, they are technically receiving a line of credit, so it is important that a merchant account provider evaluate the business credibility and credit worthiness for any & all potential clients.

HOW DOES A MERCHANT ACCOUNT PROVIDER EVALUATE RISK?

Evaluating risk depends on the requirements of the bank or financial institution that will be processing your transactions. Below is a list of items that most banks or institutions consider when underwriting any business for a merchant account.

Industry – There are many different categories of industry and each industry is evaluated by a merchant account underwriter for perceived risk. The following examples can help give an idea of which risk category a business may fall under and it is important to know that an application can be rejected during the Underwriting process specifically based on the industry that a business falls under regardless of other factors on the application.Some businesses that are extremely difficult to underwrite for include many online auction websites, online pharmacies, online gun stores, businesses involved in tourism, businesses who sell health and nutrition supplements or businesses who sell products with broad health claims.Please check the Prohibited Merchant/Prohibited Substance List if there are any doubts on what will be accepted.

Low Risk Merchant Accounts – These businesses are typically restaurants and retail businesses.

Medium Risk Merchant Accounts – website or retail stores that sell health and beauty products, telecommunication and utility services, lawyer offices and political organizations.

Higher Risk Merchant Accounts– gyms, insurance agencies, handmade apparel and jewelry, charities, businesses who have monthly memberships or subscription-based services, web development or gaming development businesses

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UNDERWRITING FACTORS

Longevity – The longevity of a business can make a difference in merchant account underwriting. The best scenario is a business that has been in business for five years or more. They typically have an established customer base with a steady flow of cash. This is important to a merchant account provider as it means that a business can effectively respond to the unexpected, like chargebacks fees. Longevity may also mean that the business is considered lower risk.

Chargeback history – Chargeback history will most definitely be taken into account. High chargeback rates are considered a huge risk as almost everybody loses money on the transaction.

Billing Procedures – Many merchant account underwriters will analyze billing procedures to access the cash flow risk. If a business bills in advance before products and/or services are produced, then a merchant account underwriter will consider it higher risk. This is due to situations changing and services or products not being used or needed by the customer. If this happens frequently, then chargeback rates are going to be much higher and a high chargeback history puts you in a higher risk category.

Business Owner Credit Score – As with most purchases for loans, a bad credit score will have an impact on the merchant account application process. If a merchant has poor credit, then we should consider submitting financial statements instead of or to accompany the credit score. If a business has multiple partners with great credit scores, then it is recommended that they fill out the application for a merchant account.

Transaction Volumes – Transaction volumes are one of the most important factors when it comes to merchant account underwriting. It isn’t uncommon for brand new businesses to have a smaller volume processing cap until their business model is proven successful. That cap will be increased when there is proven business stability.

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WHAT INFORMATION IS NEEDED FOR A MERCHANT ACCOUNT APPLICATION?

 

Required

  • Information about the business (DBA, Address, Monthly Volume, Avg Ticket, etc)

  • How the business is set up (Sole Proprietorship, Corporation, LLC, etc) along with accompanying contact information and Federal Tax ID#

  • Personal Information for the signer of the account (Name, Home Address, SSN, Contact Information)

  • Copy of a voided check/bank letter with the following business information:
    DBA or Legal Name
    Account Number
    Routing Number

Possible Additional Information

  • Most recent tax returns

  • Most recent financial statements

  • Most recent bank statements

  • Most recent credit card processing statements

  • Copy of a driver’s license, passport or SS4

  • ITIN Letter – to support the Individual Taxpayer Identification Number that is used in place of an SSN.

  • FFL – A Federal Firearms License (FFL) is a license in the United States that enables an individual or a company to engage in a business pertaining to the manufacture or importation of firearms and ammunition, or the interstate and intrastate sale of firearms.

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SPECIAL SITUATIONS FOR APPROVAL

There are many unique situations that an underwriter must consider when working through a merchant account application. Sometimes these unique situations can still be approved for a merchant account if a few adjustments are made in how the money is processed.

Upfront reserves – you may receive approval for a merchant account if the merchant agrees to a situation known as an upfront reserve. The merchant account payment processor will hold onto a designated amount upfront to mitigate some of the risk until the merchant can prove reliability. This tends to happen only on very high-risk accounts.

Holds – the processor will require a certain amount of funds to be withheld per transaction until the merchant can prove reliability. This tends to happen only on very high-risk accounts.

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TOP REASONS FOR A PENDED DEAL

Accounts may be pended for a number of reasons, including the following:

  • Missing Information – Simply, first and foremost, a merchant application will be pended because of missing information.  Ensure that the MPA is completed in its entirety. 

  • Signatures – Echoing the first bullet point, make sure that all necessary signatures are received.  A Personal Guarantor signature is required for a Sole Proprietorship but can be avoided for other Ownership types with the provision of 3 recent months Bank Statements.

  • Social Security Numbers – Social Security Numbers are requested for all applications and are required for Sole Proprietorships.  Other ownership types can provide financials (Balance Sheet and Profit & Loss) or a Dun & Bradstreet number in lieu of the signer’s SSN being provided. 

  • Individual Taxpayer Identification Number – If the merchant is using an ITIN rather than their Social Security Number then have a copy their ITIN letter, tax returns and passport included with the submission of the merchant application.

  • Federal Tax ID – Federal Tax ID numbers are required for Corporations, LLC’s or otherwise.  Be sure the TIN matches that of their W9 and/or the IRS database to avoid pending your deal as well as any backup withholding when validation of the TIN is completed.

  • Legal Name – Businesses and their affiliated Legal Names are checked against the Secretary Of State’s website in which they have filed to confirm validity. 

  • Banking Information – Voided Checks must have the Legal or DBA name preprinted if the account is not a Sole Proprietorship.  If the merchant does not have checks or a failed response on the GIACT report comes back on the verification of the information provided, then a bank letter is required.  The letter must be printed on the bank’s letterhead advising the account is open and in good standing and signed & dated by an officer of the bank. 

  • Monthly Bankcard Sales – The Card Not Present Addendum must be completed if more than 20% of the transactions are not swiped.  Recent bank statements and/or previous processing statements may be required to support higher volume and higher ticker requests.  (See the Credit Policy for those limitations). 

  • E-Commerce – If processing online, then the aforementioned Card Not Present Addendum must be completed and the merchant’s website must be compliant and contain the following: privacy policy, refund policy, terms & conditions and checkout.

  • Equipment Type – Confirm and select the equipment needed when submitting your merchant application.  Reach out to the PRM/Support team with any questions prior to boarding.

  • Multiple Ownership – Personal information is required for all business with multiple owners and that can be provided on the merchant application and/or the beneficial ownership form.  Only one signature is required if the signer holds more than 50% or more ownership but if all signers are less than 50%, then signatures for all parties are required. 

  • Business Validation – If the business cannot be verified then a Business License, Utility Bill, Sales Tax License or Lease Agreement, Acceptable Marketing Material (Yellow Page Add, Google Listing, etc.) will be requested.  If pressed further, then a Site Inspection could be ordered.

  • Additional Information/Paperwork – If ordering specific equipment such as Clover, be sure to complete and provide the necessary Addendum and Equipment Order Form.Petroleum merchants requesting Fleet Cards must have the appropriate Voyager and Wright Express paperwork/information completed.

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ADDITIONAL INFORMATION

Underwriting has the freedom to decline any deal for any of the following reasons:

  • Open Bankruptcies or derogatory credit activity

  • Listing found on MATCH (Member Alert to Control High-Risk) inquiry

  • Listing found on OFAC (Office of Foreign Asset Control) inquiry

  • Background Search, on Legal, DBA & Owners/Signors, for any derogatory findings (i.e. criminal and regulatory investigations/settlements, judgments, open suits, etc.).

  • If they are a Prohibited Merchant Type or sell any one of the listed Prohibited Substances (see Credit Policy)

Need more information on underwriting and how to avoid pends? Fill out the form below and a BOLD representative with contact you shortly.

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