Tips for payment service providers: Easy merchant onboarding

By Christopher Taine on 19. November 2014 in Open Payment Technology


As globally-oriented merchants seek to extend their market reach, it puts pressure on payment service providers to not only offer a comprehensive range of payment services, but also to onboard merchants and get them processing transactions as quickly as possible. In today’s competitive environment, time is critical.

 It’s important to us at PAY.ON that our payment service providers clients are able to rise to the top in this competitive environment, and reduce time to market for their merchants. This is why we’re launching a new series of blog posts aimed at giving payment service providers tips for getting the most out PAY.ON’s white label omni-channel payment platform. When payment service providers and independent sales organizations can fully utilize the capabilities of our modular system, they in turn can optimize payment solutions for their merchant clients.

 Rob Lemmen, Key Account Manager with PAY.ON, deals with payment service provider clients on a daily basis. Rob is perfectly placed to offer up his expertise for the benefit of payment service providers, with his knowledge of how the PAY.ON platform can facilitate easy merchant onboarding processes.

PAY.ON aims to make merchant onboarding processes fast and efficient, but still retain the flexibility that is at the core of our payment solutions. We enable payment service providers to use this flexibility to deliver the best possible service to their merchant clients.

Flexible entity structure

Using our Business Intelligence Platform (BIP), payment service providers can determine an entity structure that works best for them and their clients. Merchant accounts and contacts can be attached to each of the three levels of hierarchy; Division, Merchant and Channel. It only takes a few clicks to move merchants from one division to another, meaning that it is easy to restructure according to business needs, even after the initial merchant onboarding.

Business Intelligence Platform (BIP)

payment service providers can use the entity hierarchy flexibly to suit their needs. The Division level can be used to structure their own PSP business, i.e. distinguishing between high-risk and low-risk, adding merchants to the relevant division. Alternatively, payment service providers can onboard large clients at the Division level, with different business units of that client added at the Merchant level. This allows payment service providers who deal predominantly with SMEs to manage their onboarding processes completely differently to payment service providers managing just a few large, corporate clients.

Manage multiple Merchant IDs

Utilizing this flexible entity structure, it’s possible to create channels according to a merchant’s specific needs. The majority of clients choose to use the Channel level of the entity structure to attach channels such as eCommerce, mPOS or MOTO. However, it is also possible to add different merchant IDs to the same merchant at the Channel level, or alternatively to configure different countries or payment methods. This gives payment service providers even greater control in how they manage merchant onboarding processes.

Define risk checks

There is no “one size fits all’ solution for fraud prevention, and the perception that fraud prevention is too complicated to setup, and can negatively affect conversion rates, results in many merchants neglecting to implement suitable fraud prevention altogether. The flexibility of PAY.ON’s merchant onboarding, as highlighted above, also simplifies the configuration of sophisticated, robust and industry-proven fraud prevention tools.

As part of merchant onboarding, PAY.ON’s PSP clients can independently configure risk checks for each merchant’s channels. However, it’s also possible to configure risk checks at the Merchant and Division levels, essentially setting “default” risk checks at higher levels of the entity structure. These settings are then “inherited” by all lower levels, but the flexibility remains to set exceptions at the Merchant or Channel levels. The flexible entity structure makes it possible to group merchants or channels in such a way that the configuration of risk checks is more straightforward.

Stricter rules can be set for high-risk merchants grouped together at Division level, with lesser rules for normal or low-risk merchants grouped together. For specific types of merchants – such as those in the gambling sphere – a Division can be created with specific rules related to velocity, i.e . allowing more transactions per day than conventional eCommerce merchants. PAY.ON’s entity structure and flexible setup allows the desired flexibility, but when deployed and used properly, it can also be a timesaver for payment service providers looking to group and manage multiple merchants and channels.

In an upcoming blog, we’ll take a closer look at PAY.ON’s COPYandPAY integration, providing some useful advice on how to benefit from the channel dispatching functionality.



Christopher Taine

About the Author

Christopher TaineView all posts by Christopher Taine
Social Media & PR Manager Spreading the word about PAY.ON's products and services.


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