Risk Acceptance Criteria All Sales Channels (10/2011)

Transcription

1 Risk Acceptance Criteria All Sales Channels (10/2011) Merchant Category Low Risk Merchant Profile 70% - 100% swiped transactions No future delivery Average ticket ("AT") less than $1, Visa/MasterCard ("MC") annual volume less than $5,000, Touch-tone-capture ("TTC") merchants Merchants that process over $5,000, in annual volume or have an AT greater than $1, and are 70% - 100% swiped are still considered low risk. Core Documentation Requirements Merchant processes over $5,000, in annual volume or has an AT greater than $1,000.00: Most recent 2 years of business financial 2 trade references Additional Requirements and Alternatives If merchant processes more than 1,000,000 transactions per year: PCI compliance documents Medium Risk Merchant Profile 31% - 65% keyed transactions (no imprints) 51% keyed transactions (with imprints) Future delivery of products or services under 30 days AT less than $1, Visa/MC annual volume less than $1,200, trade reference In lieu of a PG, TransFirst ("TF") can review the business financial and attempt to credit qualify the business.

2 Low Volume, High Risk Merchant Profile Annual volume under $240, Time in business ("TIB") less than 1 year AND any of the following characteristics: a. Keyed percentage greater than 65% (no imprints) b. 100% mail-order-telephone-order ("MOTO")/internet/non-face-to-face transactions c. Future delivery of products or services under 30 days d. Not a high risk merchant category code ("MCC") as indicated below Annual volume over $240, moves the merchant to the High Risk Merchant Profile category. 1 trade reference assessment High Risk Merchant Profile Keyed percentage greater than 65% (no imprints) 100% MOTO/internet/non-face-to-face transactions Future delivery of products or services longer than 30 days AT greater than $1, Annual processing volume greater than $1,200, Business description falls under one of the following MCCs - regardless of swiped/keyed percentages: Alcohol (face to face transactions only) Affiliate programs Antiques/ art/collectibles Appliance stores Auto parts and accessories Business opportunity Cell phones/pagers Computer hardware/software Continuity programs - Credit to verify no DMP violations Custom merchandise Drapery and window coverings Drop shippers or 3rd party fulfillment companies Electronics (cameras, televisions, DVDs/CDs, stereos, etc...) Fine jewelry Firearms and firearm parts (faceto-face transactions only) Floor covering stores Furniture and home furnishings Internet service providers/web hosting Limousine services Seminars/coaching Services/consultants Sporting goods Subscriptions d. For the following business models a physical site inspection is required: Business Opportunity, Continuity Program businesses, Internet service providers/web hosting, Affiliate Program businesses. 2 trade references Most recent 2 years business financial to include: 1. Balance sheet 2. Income statement 3. Cash flow statement If financials are audited, include financial notes and auditors opinion. ; up to 6 months may be required depending on the business model and financial information If merchant drop-ships or uses a 3rd party fulfillment company: Copy of contract/agreement between the merchant and the 3rd party service provider Site inspection conducted at drop shipper or 3rd party fulfillment company location

3 Supplements/health and beauty products Tickets - events (re-sellers only) Timeshare rentals (prepaid)/resorts/hotels Travel/ tours/charters (owners only) Weight loss programs Exclusion List Adult content, related products Aggregation/3rd party services/factoring Airline reservations Bail Bonds Bankruptcy Lawyers Bidding fee (penny) auctions Collection agencies Counterfeit goods Credit repair services Credit card ID theft protection Dating services, escort services, mail-order brides Deceptive marketing practices Door to door sales Employment services Embassy, Foreign Consulate or other Foreign Government Firearms and ammunitions: nonface-to-face (internet/moto) Flea Markets Fortune tellers Future services longer than 1 year Gambling Illegal products or services Illicit drugs, tools Inbound telemarketing companies that receive calls as the result of post cards or similar mailings (as opposed to catalog or media advertising.) Insurance Brokers Import/export wholesalers Loan renegotiation services, foreclosure mitigation services, debt reduction/consolidation Locations outside the U.S. Long distance/voip service brokers Merchants in bankruptcy Merchants listed on the MATCH file Merchants selling age or legally restricted products or services, Internet/MOPO Money service businesses (transfer, transmitter, quasi cash, check cashing, currency exchange/dealers, etc...) Mortgage companies (except application fees) Occult material Outbound telesales Pharmacies: non-face-to-face (internet, MOTO) Pre-paids and pre-paid calling cards Merchants that offer products or services, or are of a business type that falls under any item listed in the exclusion list will not be boarded by TransFirst. If there are questions about whether or not a merchant or business type is excluded, a pre-qualification form must be completed and submitted to Credit Management for review. N/A

4 Providers and internet service providers Pyramid schemes or Multi-Level Marketing Pseudo pharmaceuticals (e.g. anti aging pills, sexual stimulants, weight loss, diet, etc.) Real estate purchases Shipping/forwarding brokers Speculative investment/stocks and bonds Sports forecasting or odds-making betting Substances designed to mimic illegal drugs Timeshare sales or advertising services Tobacco sales - non-face-to-face (internet/moto), or merchant has website Travel (agent/brokered) Warranties

5 Not-for-Profit Businesses Any business that can provide 501c(3) forms from the IRS documenting they are a not-for-profit business. Government Entities Any local, state, or federal office of the U.S. Government. Contact information of applicant or signer; applicant and/or signer not required to provide his/her social security number 501c(3) form from the IRS Contact information of applicant or signer; applicant and/or signer not required to provide his/her social security number Most recent 2 years business financial to include: Balance sheet Income statement Cash flow statement If financials are audited, include financial notes and auditor's opinion. None Definitions and Other Key Considerations: 1. "Merchant Category" provides a list of characteristics that determine each merchant's risk level. 2. "Core Documentation Requirements" are defined as the minimum documents that need to be provided in order for the application to be considered. No exceptions can be made to the premise inspection requirement. 3. "Additional Documentation Requirements or Alternatives are defined as additional documents that may be requested to supplement the core documentation. Such additions may be requested in cases where the credit profile is deemed sub-standard. 4. "Merchant application packet" is comprised of a properly completed and signed merchant application and processing agreement. 5. The Credit Analyst may require additional items to those listed in the Risk Acceptance Criteria Matrix if the merchant is deemed to pose a higher-than-average risk to TransFirst and/or further clarification of the merchant's business model, practices, or operations is needed. This includes but is not limited to proof of ownership interest (percentage). Credit Underwriting will review the information provided and render a credit decision. While best efforts will be made to approve the account in line with TransFirst's risk tolerance, no guarantees can be made. CREDIT POLICY Policy effective date: October 1, 2011 TransFirst Credit Policy Department, August 24, 2011