Underwriting Guidelines Effective as of September Philosophy > What we do > What we don t do > Exceptions > Contact >

Transcription

1 Underwriting Guidelines Effective as of September 2016 Philosophy > What we do > What we don t do > Exceptions > Contact >

2 Philosophy These guidelines are designed to provide our partners the information they need to grow their business with SignaPay PayHub. Our goal is to work collaboratively with each Partner to get as many quality deals approved as quickly as possible by finding ways to say yes whenever possible. What we do Type of Merchants - There are three categories of merchants that require different levels of Underwriting at SignaPay. 1. Level 1 Merchants - Level 1 merchants are any merchant operating in a card present environment where 70% or greater of all transactions are swiped transactions. MONTHLY PROCESSING VOLUME Document < $125K/Month $125K-500K/Month > $500K/Month* Signed Merchant Application Yes Yes Yes Voided Checks TSYS Platform** No No No Voided Checks Priority and First Data Platform** Yes Yes Yes 3 Most Recent Monthly Bank Statements No Yes Yes 3 Most Recent Monthly Processing Statements No Yes Yes 2 Years Audited Financials or Tax returns No Yes Yes * If it exceeds $500K it will need underwriting risk committee approval - 14 day process ** Note that voided checks are not required on the TSYS platform because we verify the bank account owner electronically. Should our online bank account validation reveal that the application owner is not the person who owns the bank account, we will at that point ask you to supply a voided check. If you are unsure which platform the application will be submitted to, then you should supply a voided check. 2. Level 2 Merchants - Level 2 Merchants are any merchant with greater than 30% of all sales are transacted in a card not present environment, and/or potential future delivery exists. MONTHLY PROCESSING VOLUME Document < $75K/Month $75k-500K/Month > $500K/Month Signed Merchant Application Yes Yes Yes Voided Checks TSYS Platform No No No Voided Checks Priority and First Data Platform Yes Yes Yes Mail Order/Telephone Order (MOTO) Addendum Yes Yes Yes 3 Most Recent Monthly Bank Statements No Yes Yes 3 Most Recent Monthly Processing Statements No Yes Yes 2 Years Audited Financials or Tax returns No No Yes Copy of Driver s License Yes Yes Yes Articles Of Incorporation No Yes Yes Additional documents may also be required Page 1

3 3. Level 3 Merchants Restricted - Level 3 merchants are high risk merchants who run businesses that typically have high chargebacks, high dollar tickets, recurring billing options, high risk product offerings and are usually card not present. HIGH RISK MERCHANT DOCUMENT REQUIREMENTS Document Level 3 Merchants Signed Merchant Application Yes Voided Checks TSYS Platform No Voided Checks Priority and First Data Yes Mail Order/Telephone Order (MOTO) Addendum Yes 6 Most Recent Monthly Bank Statements Yes 6 Most Recent Monthly Processing Statements Yes 2 Years Audited Financials or Tax returns Yes Additional documents may also be required What we don t do Prohibited Merchants SignaPay will not approve the following merchant categories under any circumstances: Adult streaming video Airlines Air Carriers, Airlines not elsewhere classified Aggregators this occurs when one merchant processes on behalf of multiple/many merchants Any merchant that may damage the reputation of SignaPay/Sponsor Bank Any sale of merchandise deemed illegal by state or federal governments Asset protection / Venture capital Betting Including Lottery Tickets, Casino Gaming Chips, Off-Track Betting, and Wagers at Race Tracks CBD/Hemp Products Cyber locker / Tube sites / Torrent sites Direct Marketing Adult Online & Inbound Telemarketing Merchants Direct Marketing Outbound Telemarketing Merchants Direct Marketing Travel-Related Arrangement Services E-Commerce gambling and betting Unless deemed legal by card brands or by law Escort Services Loan modification Medical marijuana or any merchant in the industry or selling products within the industry Money Transfer Merchant MOTO / E-Commerce pharmacies Multi-level marketing / Pyramid scheme merchants Offshore merchants Payday lending /Paying off Debt with Debt / Title loans or any predatory loan offering Prepaid phone cards / air-time minutes Steamships, Cruise Lines Timeshare sales Page 2

4 What we don t do (cont.) Prohibited Nutraceutical Products Our sponsor banks have updated the list of banned nutraceutical substances. Please do not submit deals if the merchant advertises and sells any of the following: Acai Berry Amino Acids Where compound is a Prescription Medication CBD Dymethazine Garcinia Cambogia Green Coffee Bean/Extract Halodrol HCG H-Drol K2 Kava Khat Kratom (M. speciose) M-Drol Methasterone Raspberry Keytone Resveratrol Sexual Enhancement Products Spice Synthetic Marijuana Exceptions SignaPay understands that some merchant accounts require special considerations. We see these accounts as the exception, not the rule, and will work with our Partners to evaluate each underwriting exception case-by-case. Our sponsoring banks have the final authority on approval and boarding of exception merchants. SignaPay has the right to decline any merchant that may cause damage to the company s reputation. e-cig Merchants Policy Required MasterCard Registration for e-cig/vape merchants As of October 8, 2016 MasterCard added electronic nicotine delivery systems to its Business Risk Assessment and Mitigation (BRAM) compliance program. This includes all tobacco products below, but not limited to: E-cigarettes and vape pens Cigars Hookah (waterpipe) tobacco Pipe tobacco Nicotine gels e-cig/vape merchant are required to be registered with MasterCard as part of the program. SignaPay will register each e-cig/vape merchant into the BRAM program. The annual cost of this program is $1,000 per Merchant ID (MID). Page 3

5 Exceptions (cont.) Debt Collection / Collection Agencies Policy All Collections accounts require additional documentation prior to boarding: Collection Policy Acknowledgement Cross guarantee form (Entities of a parent account; collection and asset for parent) Copy of principle s driver s license Articles of Incorporation Personal Financial Statement/Tax Return (Processing$25k/month or more) FDCPA Compliant Statement signed by Officer of Merchant that Merchant is where applicable or if it doesn t apply (this is in addition to the V/MC Signoff) Scripts for collection calls Example of authorization forms for payment, collection or debt installment plans Example of agency and client contract Collection Agency client list Client contracts (Upon request) Collections The following collection agencies are prohibited: Payday Loan Financial Institutions collecting on: Credit Cards, mortgages and other loans Contact Us SignaPay PayHub is committed to building partnerships, growing quality business and remaining focused on people and payments. If we can help you with additional information regarding the underwriting Guidelines give us a call or send us an . Phone: Ext. 5 appsprocessing@signapay.com Fax: Page 4

6 ADDENDUM 1 - AS OF SEPTEMBER 2016 LEVEL 1 MERCHANTS 80%+ RETAIL/CARD SWIPED MCC Description MCC Description MCC Description 8931 Accounting Services 8911 Engineering/Arch. Service 8043 Opticians/ Eyeglasses 763 Agricultural Cooperative 7342 Exterminating Services 8042 Optometrists Ophthalmologist 4582 Airports - no travel 5651 Family Clothing Stores 5976 Orthopedic Goods 4119 Ambulance Services 5814 Fast Food Restaurants 8031 Osteopaths 7996 Amusement Parks/Circus 6010 Financial Inst-Manual cash disbursement 5065 Electrical Parts/Equip. Whsl 5699 Apparel, misc Financial Inst-Merchandise/ Service 5231 Paint & Wallpaper Stores 7998 Aquariums 6011 Financial Inst-Auto cash disbursement 5198 Paints/Varnishes/Supplies-Whsl 5970 Artists Supply/Craft Shop 9222 Fines (community and DMV) 7523 Parking Lots & Garages 7538 Auto Repair Shops (non-dealer) 5718 Fireplace & Accessories 5995 Pet Shops & Supplies 5511 Auto/Truck Sales, New (franch) 5193 Florist Supplies Whsl 5172 Petroleum Products Whsl 5542 Automated Fuel Dispensers 5992 Florists 5044 Photo Equip. & Supplies Whsl 7523 Automobile Parking 5499 Food Stores, misc Photo Finishing 7535 Automotive Paint Shops 5422 Freezer & Locker Meat 7221 Photographic Studios 5532 Automotive Tire Stores 5983 Fuel Dealers 5131 Piece & Dry Goods/Notions Whsl 5599 Automotive, misc General Merchandise - Retail 8049 Podiatrists 9223 Bail and bond payments 7992 Golf Courses (public & private) no membership 5462 Bakeries 5947 Gift/Card/Novelty Shops 9402 Postal Services 5921 Package Stores Beer, Wine, Liquor (Retail) 7230 Barber/Beauty Shops 5950 Glassware/Crystal Stores 2741 Publishing/Printing, misc Beauty Salon 5631 Women s Accessory/Specialty 5735 Record Shops 5940 Bicycle Shops & Service 9399 Government Services 7999 Recreation Services - Retail 7932 Billiards & Pool Halls 5411 Grocery, Supermarkets 5973 Religious Good Stores 5942 Book Stores 5072 Hardware & Equipment Whsl 8661 Religious Organizations 5192 Books/Periodicals/Newsp Whsl 5251 Hardware Stores 7338 Reproduction Services 7933 Bowling Alleys 5975 Hearing Aids Sales/Svc 5812 Restaurants 5997 Electric Razor Sales/Svc 5945 Hobby/Toy/Game Shops 5935 Salvage & Wreckage Yards 5946 Camera Supply Stores 5611 Men's & Boys Clothing 5541 Service Stations 5441 Candy/Nut/Confectionery 5698 Wig & Toupee Shops 5949 Sewing & Piece Goods 7542 Car Washes 5200 Home Supply Whse Stores 7251 Shoe Repair Shops 7217 Carpet/Upholstery Cleaner 8062 Hospitals 5661 Shoe Store 5169 Chemicals Whsl 5085 Industrial Supplies Whls 2842 Specialty Cleaning 5641 Children's & Infant Wear 7211 Laundries-Family & Comm Men's & Women's Clothes 8041 Chiropractors 7210 Laundry Services 5655 Sports & Riding Apparel 7349 Cleaning/Janitorial Svc 8111 Legal Svc/Attorneys (Not bankruptcy law) 5943 Stationary/Office Supply 7296 Clothing Rental 5948 Luggage & Leather Goods 7339 Steno & Secretarial Svs 5046 Commercial Equipment Whsl 5211 Lumber & Bldg Materials 5697 Tailors & Alterations 5139 Commercial Footwear Whsl 4468 Marinas Service & Supply (No storage) 7276 Tax Preparation Services 7333 Commercial Photography 5047 Med/Dent Equip & Supply Whsl 7534 Tire Retread/Repair 5137 Commercial Uniforms Whsl 8071 Medical & Dental Labs 5993 Tobacco Shops (No MOTO/ Internet) 5039 Construction Materials Whsl 8099 Medical Services 4784 Toll and Bridge Fees 9211 Court Costs (alimony/child support payments) Hotels, Motels, Resorts, Casinos (No deposits) 7991 Tourist Attractions & Exhibits (No Passes, Deposits Retail Swiped) Page 5

7 ADDENDUM 1 - AS OF SEPTEMBER 2016 LEVEL 1 MERCHANTS 80%+ RETAIL/CARD SWIPED (Cont.) MCC Description MCC Description MCC Description 5977 Cosmetic Stores 5941 Sporting Goods Stores (No MO/TO firearm sales) 7033 Trailer Parks/Campgrounds (No Passes, Deposits Retail Swiped) 4215 Courier Services 5051 Metal Service Centers Whsl 2791 Typesetting and Services 5451 Dairy Products 7832 Motion Picture Theaters 5978 Typewriter Sales/Svc 8021 Dentists/Orthodontists 5571 Motorcycle Dealers 5931 Used Merchandise 5311 Department Stores 4214 Motor Freight Carriers 4900 Utilities 5310 Discount Stores 5013 Motor Vehicle Supplies Whsl 5331 Variety Stores 8011 Doctors 5733 Music Stores 742 Veterinary Services 5813 Drinking Places 5994 News Dealers & Newsstands 7994 Video Arcades 5621 Women's Ready to Wear 8050 Nursing/Personal Care 7841 Video Tape Rentals 5912 Drug Stores & Pharmacies (excludes MO/TO & Internet) 5111 Office Supplies Whsl 7216 Dry Cleaners LEVEL 2 MERCHANTS WITH >20% CARD NOT PRESENT WITH FUTURE DELIVERY RISK MCC Description MCC Description MCC Description 5937 Antique Reproductions 1711 Heating/Plumbing/A/C 7629 Repair-Electrical/small appliance 5932 Antique Shops 5719 Home Furnishings, misc. (no delayed delivery / custom furniture) 7622 Repair-Electronics (no sales of electronic products) 7531 Auto Body Repair 0780 Landscaping Services 7699 Repair-Miscellaneous 5533 Automotive Parts Stores 4111 Local Transportation 4011 Railroads (freight) 5511 Auto/Truck Sales, New (non-franch) 1740 Masonry, ETC RVs & Campers 7929 Bands/Orchestras 5271 Mobile Home Dealers Repair-Clock, watch, jewelry (no jewelry sales) Car Rental Agencies 5592 Motor Home Dealers 5598 Snowmobile Dealers 7512 Car Rental Agencies 6051 Non Fin Institutions 9311 Tax Payments 8641 Civic/Fraternal Groups (non-memberships) 8398 Charity/Social Services Nurseries/Lawn & Garden 7361 Temp/Employment Agency Office Furniture Whsl (no delayed delivery / custom furniture) 5998 Tent & Awning Shops 4011 Railroads (freight) 5933 Pawn Shops 8734 Testing Laboratories 7631 Repair-Clock, watch, jewelry (no jewelry sales) Welding Services Weight loss control centers only Tier Advertising Services Alarm Systems / Detective Agencies Personal Services, misc. (no weight loss control centers) Plumbing & Heating Equip & Supplies Whsl 7549 Towing Services 7513 Truck & Utility Trailer 7623 Repair-A/C/Refrigeration 7829 Video Production Dance Studios Schools (non- membership) 5971 Art Dealers & Galleries 5964 Direct Mkting-Catalog 5199 Non-durable goods Whsl 5965 Direct Mkting-Cat & Ret Other Schools 5411 & Athletic Clubs 5960 Direct Mkting-Insurance Service Phone Services Perishable food and plant items MOTO/Internet Page 6

8 ADDENDUM 1 - AS OF SEPTEMBER 2016 LEVEL 2 MERCHANTS WITH >20% CARD NOT PRESENT WITH FUTURE DELIVERY RISK (Cont.) MCC Description MCC Description MCC Description 8675 Automobile Associations 5969 Direct Mkting Political Organizations 4457 Boat Rentals & Leases 5714 Drapery & Upholstery 8999 Professional Services 5551 Boat Dealers 5963 Door-to-Door sales 6513 Real Estate Agents / Mgrs property rentals 7399 Business Services 5099 Durable Goods (NEC) 7641 Repair-Reupholster & Furn 8244 Business/Secretarial Schools 8211 Elementary/Secondary Sch RV/Motor Home Rentals 4131 Bus Lines 5732 Electronic Sales 1761 Roofing & Siding 7278 Buying/Shopping services, clubs, etc 1731 Electrical Contractors 6760 Savings Bonds 4899 Cable & Other Pay TV 7394 Equipment Rental 6211 Security Brokers/Dealers 1750 Carpentry Contractors 5713 Floor Covering 1799 Special Trade Cont Caterers 7261 Funeral Services 5999 Specialty Retail, misc Computer Maint/Repair 5712 Furniture 7032 Sport & Rec Camps 7372 Computer Programming 5681 Furriers and Fur Shops 5996 Swimming Pools 4816 Computer Services/ Internet 5300 Wholesale Clubs 5972 Stamp & Coin Stores 8699 Membership Organizations 1520 General Contractors 4225 Storage 5734 Computer Software Stores 5722 Household Appliance 5094 Stones/Watches/Jewels Whsl 5045 Computers & Software Whsl 7375 Information Retrieval Svc 4814 Telecommunication Svc Consumer Credit Agencies - Not Repair 6300 Insurance Sales, including underwriters face to face (excludes Warranties) 4812 Telecommunications Equip Correspondence Schools 5944 Jewelry Stores 4821 Telegraph Services 7277 Counseling Services (non-debt) 4121 Limousines & Taxi Cabs 4789 Transportation Services 8351 Child Care Services 7297 Massage Parlors - With License 7922 Theatrical producers only 8220 Colleges & Universities 7392 Management Consulting 7922 Ticket agencies only 1771 Concrete Work Cont Vocational/Trade Schools Membership Clubs (sports, recreations, athletic) 5521 Used Auto/Truck Dealers These lists are not comprehensive, but show the most popular merchant types. If you have any questions about any merchants not appearing on these lists, please contact the Underwriting Department. Page 7

9 ADDENDUM 1 - AS OF SEPTEMBER 2016 High Risk MCC s MCC Description MCC Description 7299 Collection Accounts 5944 Jewelry Stores (High Ticket) 5993 Vapor Accounts 7997 Membership Clubs (CNP, Discounts) Subscription/Membership 7922 Ticket Agencies 5993 MOTO/Ecomm E-Cigs & Vapor 7299 Document Preparation (Loan Related) 5999 (retail) Adult Novelty Stores Retail & CNP 5499 Supplement Sales/Neutra Products 9223 Bail and Bond Payments Telecommunication/Prepaid Cards 5192 Books/Periodicals/Newsp - Whls 5734, 7379 Computer Tech Support (Int'l) 8999 Auction House 5993 E-commerce/MOTO Tobacco/Cigars 5937 Antique Reproduction Various Cruise Lines 5932 Antique Shops (High Ticket) Various Airlines 5971 Art Dealers & Galleries 7273 Dating Sites 4816 Computer Services/Int'l , Various Auto Ship, Free Trials, Neg Option 8699 Membership Orgs (Online Ecomm) 4722 Tour Operators 5933 Pawn Shops Various Credit Repair 5712 Furniture (Special Order) 7372, 7392, 8299 Web Development/SEO 1520, 1799 General Contractors (High Ticket) Card Brand Program Administrative Fee Merchant Chargeback Monitoring Program $1,000 Common Point of Purchase Program $1,000 Global Merchant Audit Program $1,000 Note: All Types of Collection Agencies will require the additional documentation noted on the Collection checklist Note: Tobacco, Vapor and E-Cig Business Types will be registered with MC and will incur a $1000 account management fee annually The MCC codes listed are considered to be high risk to SignaPay and may have a high propensity for chargeback activity. All MCC codes above may be subject to a Risk premium from 10% to 30% of (gross/net) revenue. These percentages are determined by the Sponsor Bank. Page 8