Worldpay MSP Underwriting Grid

Transcription

1 Worldpay MSP Underwriting Grid Effective 11/17/2014 Description Swipe % Processing statements Monthly volume where financials are required General/Retail - Low Risk >80% 1* $320,000 General/Retail - Low Risk <80% 2 $200,000 General/Retail - Restricted Any 2 $25,000 Internet <80% 2 $100,000 * Applicable to all Internet applications unless classified as restricted or special high risk. Special High-Risk Merchants Any 3 (min.) $25,000 * In addition to the requirements listed, all applicants within this category will need to have a detailed delivery/service time frame documented and approval dictated by the business model. Merchant accounts in this category should also be structured with premium pricing. New merchant business verification All merchants who are new to processing are required to submit one of the following items: Business License Sales Tax Permit Interior photos showing inventory and exterior photos showing frontage and signage (both photos required, must be digital and unaltered) Yellow page advertisement Business financials (opening balance sheet if business is newly opened) Articles of Incorporation Certificate of Occupancy Building/property lease Utility bills from two different providers Principal bank statements (3 recent months) Underwriting documentation requirements and policies Unverifiable businesses and/or principal(s) will require other documentation, based on CIP regulations. For all Non Profit Organizations, a copy of either IRS Form 990 or documentation verifying the entity s 501(c)(3) or 501(c)(6) tax-exempt status is required unless the business meets LWnWeb. Site survey acknowledgement (AE signature in the site section of the CPA) must be present for all applications with the following exceptions: Franchises Professional Services (medical, legal, etc.) National Account Home-Based or Web-Based Businesses (marketing materials required) Any high-ticket request above $10,000 may require financial statements. In those situations where the site survey was not conducted, the AE will be required to provide copies of the business license and driver s license. If the business license is not available, the AE may provide a substitute item from the New Merchant Business Verification list. Note: yellow page advertisements are not an acceptable substitution item for this purpose. Additional information Any average ticket request above $1,500 will require financial statements (Underwriter discretion with low volume accounts < $25,000). A waiver of financials may pertain to those low-risk accounts with volume $320,000, low average ticket, and swipe percentage > 80%, at the credit officer s discretion, subject to corresponding approved credit authority. The date of the processing statements should be within 90 days of the contract signed date and consecutive. A personal guarantee is suggested and not required unless it is either restricted, keyed, Internet or special high-risk business. pg 1

2 Super accept merchants These merchants are defined as a subset of Low Risk merchants who are 100% cash and carry with no extended delivery times. All CIP and FACTA regulatory requirements apply. Open bankruptcies are an automatic disqualifier of Super Accept. Super Accept Merchants require either one statement if currently processing or one complete item from the list provided on page one to satisfy new merchant requirements (business license, sales tax permit, photos, etc.) Super Accept - MCC/SIC Codes SIC SIC Name SIC SIC Name SIC SIC Name 742 Veterinary Services 5812 Restaurants (Except Express) 7251 Shoe Repair Shops 5122 Drugs, Sundries 5813 Public Houses & Bars 7349 Cleaning & Maintenance 5193 Florist/Nursery Supplies (P.Cd) 5814 Express Payment Service Fast Food 7395 Photofinishing 5251 Hardware Stores 5912 Drug Stores & Pharmacies 7538 Automotive Service Shops 5310 Discount Stores 5921 Liquor Stores 7542 Car Washes 5311 Department Stores 5940 Bicycle Shops-Sales & Service 7832 Movie Theaters 5399 Misc. General Merchandise 5942 Book Shops 8011 Doctors-Not Elsewhere Class Grocery Stores, Supermarkets 5947 Gift, Card, Novelty & Souvenir 8021 Dentists, Orthodontists 5441 Candy, Nut & Confectionery Stores 5949 Sewing, Needlework, Fabric Goods 8031 Osteopaths 5451 Dairy Products Stores 5950 Glassware/Crystal Stores 8041 Chiropractors 5462 Bakeries 5992 Florists 8042 Optometrists, Ophthalmologists 5499 Miscellaneous Food Stores 5993 Tobacco Stores 8043 Opticians 5532 Automotive Tire Stores 5994 Newstands 8049 Chiropodists 5541 Service Stations 5995 Pet Shops 8062 Hospitals 5611 Clothing (Men & Boys) 5999 Misc. Retail Stores 8099 Med Svc./Health Prac. Not Else 5621 Clothing (Women) 7210 Laundry, Cleaning, Garment SVC 8398 Charitable & Social Service 5631 Womens Accessory, Specialty 7211 Laundry Services 9222 Fines 5641 Clothing (Children & Infants) 7216 Dry Cleaners 9399 Government Services, Misc 5651 Clothing (General) 7230 Barber & Beauty Shops pg 2

3 Special high-risk merchants Theater/Ticket Agencies Direct Selling Door-to-Door Travel Agencies Subscription/Memberships (> 30 days) Internet Firearms and Weapons Unswiped Alcohol Sales (Wine, Beer) Unswiped Tobacco Products Furniture/Home Furnishings Investment Opportunites Employment Agencies Bail and Bond Payments Extended Future Delivery Match Making Services Coin Dealers Airlines Seminars Country Clubs Multi-Level Marketing Prohibited merchants Adult Activity or content (Gentlemen s clubs and sex shops) Loan Modification Services, foreclosure assistance programs Self-diagnosing kits for potentially fatal diseases Gambling/Betting Dating and Escort Services (Adult) Outbound Telemarketing Get Rich Quick Schemes Tipster Services/Odds makers Sexual Services Phone/Internet Sex Chat Internet Pharmaceuticals Collection Agencies (includes credit restoration/repair agencies) Cellular Phone Unlocking/Jamming Devices Cellular Phone/Key Entered Telecommunication Transmissions Check Cashing Services Prohibited merchants (cont.) Pyramid Schemes Illegal Goods and Services Sale of Brides/Grooms (e.g., mail order brides) Third-Party Processors Pornography Offensive Goods and Services Unswiped Cigarette Sales Unswiped Liquor Sales E-commerce or MOTO Nutraceuticals (weight loss products, muscle enhancing products, etc.) MSB s (Money Service Business Cash Advance Models) such as Payday Loan companies, Title Loan Companies that fall under the cash advance category Electronic/ E-cigarettes (Moto/Internet only) Bankruptcy Debt Relief Attorneys Negative Renewal merchants( such as those that offer teaser rates, free samples of products with the consumer paying the shipping only charge and the merchant will bill the cardholder automatically on a recurring month to month basis). Time Shares Substitutions. If applicable, business verification may be in the form of a business license, Articles of Organization or sales tax permit, or any other items found under the New Merchant Business Verification List. Financial Subsititute = Corporate tax return, including Form If the company is new, an opening balance sheet can be provided. If an opening balance sheet is not prepared, then a business banking statement and inventory listing will suffice. Policy exceptions. Any exception to the requirements listed must be approved by a credit officer, subject to his or her corresponding approved credit authority. pg 3

4 Policy sector change for furniture stores: New accounts 1. Financial statements must be presented with any application submission. a. Exceptions to the above must be fully documented as a policy exception, separate of the application, approved by the VP of credit and forwarded to the Chief Risk Officer and VP of credit for informational purposes and recording (if necessary). Note: Furniture stores have a high loss rate based upon the historical margins. Going forward, financial statements are required, reserves may be necessary to offset risk, overall strong credit profile (in business >2 years, PG (Personal guarantee of owner on CPA), credit rating favorable, favorable pricing (minimum 50 bps as guidance) as well as other items may be requested. Required customer due diligence for authorized signers of large, well-known, well-established Businesses: A large, well-known, well-established business (LWnWeB) has been in operation for 5 years, has annual sales of at least $5 million, a Lexis-Nexis score of 50 and a clean public record. For LWnWeB, CIP verification is established on the business entity (Worldpay s customer). Although a departure from the general due diligence process, verification of the primary principal or authorized signer is not required with respect to LWnWeB, as a sufficient degree of certainty has been established on the business entity. Required Customer Due Diligence by business entity Customers that closely meet the large-well known/well-established criteria may be referred to Regulatory Risk BSA-AML for an independent assessment. Note: An in the table below denotes acceptableinformation. Sole Proprietor Corporation - Non Public (incl, LLC) Partnership (incl, LP) Public Corporation Articles of Incorporation Partnership Agreement Business License IRS Form Schedule C IRS Form 1065 or Schedule K-1 Corporate Tax Return Fictitious Name Certificate Application for TIN (IRS Form SS-4) Bank Letter Comm l Account Audited Financial Statements (or compiled by 3rd party) Certificate of Good Standing Certificate of Occupancy Sales Tax Permit Building/Property Lease Utility Bills (at least 2 from different providers)** Sect y of State Website** Stock Ticker Symbol **These documents can NOT be used as the sole source of verification but can be used in addition to one of the other documents listed. pg 4

5 Visa /MasterCard requirements for merchants with ecommerce websites The rapid growth of electronic commerce and new Internet business models continues to pose risk management challenges for Acquirers/Processors. Visa and MasterCard have mandated that all merchants who process and/or accept credit card orders using a shopping cart, web hosting company or other internet means (often referred to as ecommerce transactions ), must adhere to the following regulations to remain compliant. Websites now must display all of the information listed below. Account Executives can provide this information as a checklist for their merchants. A complete description of the goods and/or services offered. Business and contact information, including the business address and telephone number. The address displayed must match the physical address of the business. Alternate contact information (including address and fax number). The currency in which the transaction will be conducted. Customer service telephone number. Delivery standards, including delivery method (i.e., FedEx, UPS, USPS, etc.) and time standards i.e., product will arrive within three business days). Both domestic and foreign import/export shipping time standards must be included (if applicable). Merchants must disclose the business s country of origin (i.e., United States). Card association logos must be displayed. Terms and conditions, as well as export and/or legal restrictions (including for international transactions, if applicable) must be displayed on: The same screen as the checkout screen (where the total purchase amount is displayed), OR Within the sequence of Web pages the cardholder accesses during the checkout process. A clear and concise privacy policy. This must also disclose what information is collected, how it is tracked and with whom it is shared. The business s refund/return policy must be described in full detail, so that cardholders are aware of their options before purchasing the product or service. It must also include a Click Here to Accept function. The Website s security method for the transmission of payment data (i.e., SSL Secured 128 bit). Customers must be able to review all information prior to completing the sale and have the option to cancel the sale. Contact information for the Web hosting service must also be displayed. The above information will be reviewed by Underwriting when an ecommerce application is submitted. The deal will be pended if the website does not display all of the above information. Account Executives must inform their merchants who process ecommerce transactions of the above Visa/MasterCard requirements. In addition to the initial underwriting review, annual reviews are required by Visa and will be conducted by the Transaction Risk Department for each ecommerce merchant. Merchant will be contacted if non-compliant items are noted. If not corrected, the merchant account may be subject to termination. Worldpay All rights reserved. Worldpay, the logo and any associated brand names are trademarks of the Worldpay group of companies. All other trademarks are the property of their respective owners. Worldpay US, Inc. is a registered ISO/MSP of Citizens Bank, N.A. pg 5