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.
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.
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.)
742 Veterinary Services 5122 Drugs, Sundries 5193 Florist/Nursery Supplies (P.Cd) 5251 Hardware Stores 5310 Discount Stores 5311 Department Stores 5399 Misc. General Merchandise
5411 Grocery Stores, Supermarkets 5441 Candy, Nut & Confectionery
Stores
5451 Dairy Products Stores 5462 Bakeries
5499 Miscellaneous Food Stores 5532 Automotive Tire Stores 5541 Service Stations 5611 Clothing (Men & Boys) 5621 Clothing (Women)
5631 Womens Accessory, Specialty 5641 Clothing (Children & Infants) 5651 Clothing (General)
more
-SIC SIC Name SIC SIC Name SIC SIC Name
5812 Restaurants (Except Express) 5813 Public Houses & Bars
5814 Express Payment Service Fast Food
5912 Drug Stores & Pharmacies 5921 Liquor Stores
5940 Bicycle Shops-Sales & Service 5942 Book Shops
5947 Gift, Card, Novelty & Souvenir 5949 Sewing, Needlework, Fabric
Goods 5950 Glassware/Crystal Stores 5992 Florists 5993 Tobacco Stores 5994 Newstands 5995 Pet Shops 5999 Misc. Retail Stores
7210 Laundry, Cleaning, Garment SVC
7211 Laundry Services 7216 Dry Cleaners
7230 Barber & Beauty Shops
7251 Shoe Repair Shops 7349 Cleaning & Maintenance 7395 Photofinishing
7538 Automotive Service Shops 7542 Car Washes
7832 Movie Theaters
8011 Doctors-Not Elsewhere Class. 8021 Dentists, Orthodontists 8031 Osteopaths 8041 Chiropractors 8042 Optometrists, Ophthalmologists 8043 Opticians 8049 Chiropodists 8062 Hospitals
8099 Med Svc./Health Prac. Not Else 8398 Charitable & Social Service 9222 Fines
9399 Government Services, Misc Super Accept - MCC/SIC Codes
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 1120.
• 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.
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 “X” in the table below denotes acceptableinformation.
more
-Sole Proprietor
Corporation - Non Public (incl,
LLC) Partnership (incl, LP) Public Corporation Articles of Incorporation X Partnership Agreement X Business License X X X
IRS Form Schedule C X
IRS Form 1065 or Schedule K-1 X
Corporate Tax Return X
Fictitious Name Certifi cate X
Application for TIN (IRS Form SS-4) X X X
Bank Lett er – Comm’l Account X X X
Audited Financial Statements (or compiled by 3rd party) X X X
Certifi cate of Good Standing X X X
Certifi cate of Occupancy X X X
Sales Tax Permit X X X
Building/Property Lease X X X
Utility Bills (at least 2 from diff erent providers)** X X X
Sect’y of State Website** X X X
Stock Ticker Symbol X
**These documents can NOT be used as the sole source of verifi cation but can be used in addition to one of the other documents listed.
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 email 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.
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