Onboarding & Underwriting Process

As you onboard new Merchants, it is important to note that you are simultaneously triggering a two-step process:

Step 1 - A new Merchant entity is created within the Payrix API and platform.

Step 2 - The Merchant’s application is submitted to the Payrix Underwriting team for review and approval. Upon underwriting approval, a Merchant will be able to begin processing payments.

Because we realise that simplicity and quick access can be important priorities for you and your Merchants, we are committed to providing instant approval for the majority of new accounts most of our clients submit to Payrix.

What is the Payrix underwriting process?

As the payment facilitator, Payrix serves as a financial services provider to you and your Merchants. Therefore, we are responsible to maintain certain legal and regulatory requirements for any Merchant using our platform, ensuring a safe and secure environment is being maintained for Merchants to be able to process transactions and send funds to their bank account. This includes validating aspects of the Merchant’s business, their personal information, and their industry prior to when their account is approved to process payments.

The underwriting process is primarily focused on the following key elements of the Merchant’s application and the data provided in signing-up for Payrix:

Validating the Merchant’s business - ensures the Merchant’s submitted business data (e.g. address, website URL, etc.) is accurate and the scope of their goods/services is compliant with legal and regulatory guidelines.
Validating Responsible Manager/Directors and Beneficial Owners - verifies the personal information (e.g. Identification Documentation) submitted by the Merchant is accurate and that they aren’t flagged on any government sanctions or payment-industry watchlists.
Preventing illegal & fraudulent activity - as the payment facilitator, Payrix is responsible to prevent any Merchants from engaging in illegal or fraudulent activity while using our platform. Some common relevant scenarios include preventing money-laundering (AML), identity theft, fraudulent account takeover etc.
Validating the Merchant’s bank account - confirming that the submitted banking information is valid and that the account is associated with the Merchant’s business and/or owner. This validation process meets industry requirements and helps prevent fraudulent activity.

Understanding Each onboarding Status

Throughout the onboarding and underwriting process, you can monitor a Merchant’s onboarding Status to determine if they are approved to begin processing payments or where in the process their application currently sits.

Here is a brief description of what each onboarding Status means for new Merchant accounts:

Digital onboarding

Pending	Merchant yet to finalise application form or accept acceptance email.
Risk Checks	Application with Risk team.
Data Required	Incorrect information/documentation supplied and more data required by our Risk team. Payrix team to liaise with Merchant/Partner to obtain data required.
Escalated to Risk	Data previously requested has been obtained and application has been sent to Risk for further review.
Onboarding	Approval for console account creation and status then moves to Console Account Created.
Console Account Created	Account created in Portal and settings to be configured by our Client Success team and send set up email.
Setup Complete	Setup Complete and under 5 transactions or no transactions processed.
Closed Won	5+ transactions processed.
Closed	Application / Account Closed as requested by Merchant or declined by Risk.

Onboarding via Form

Application Form Sent	Application form sent for completion.
Application Form Returned	Application form completed and returned to Payrix.
Application Form Received	Application form received, creates the Application form in SF.
With Onboarding	Awaiting documentation.
With Compliance	Application with Risk team to review documentation.
With Client Set Up	Client Success team setting up account.
Setup Complete	Setup Complete and under 5 transactions or no transactions processed.
Parked	Application not proceeding at this point in time but will in future.
Closed Won	5+ transactions processed.
Closed	Application / Account Closed as requested by Merchant or declined by Risk.