Risk Process

THE COMPLEXITY OF THE MERCHANT ONBOARDING PROCESS

ONBOARDING NEW CUSTOMERS

CUSTOMER DATA VERIFICATION (KYC)

COUNTERPARTY CREDIT CHECK

ACTIVATION

• Collection of all necessary documents, supporting information (ID, corporate registration documents) • Verification static data such as address, location, account information • commercial history (how long in business • Merchant Industry (MIC) • Basic KYC checks (OFAC, PEP checks) • Ownership structure / ultimate beneficial ownership • Blacklist checks • In eCommerce: web crawler to detect negative traffic

• Capture of all data • Upload of supporting documents • Check if all data is complete, accurate • Does KYC and Counterparty credit check both point to approval? • Activation of customer, ready to accept and transact payments in cards

• Credit score (e.g. Fico, internal models) • Merchant Industry Code (determines risk of non-delivery exposure) such as travel, leisure and non-physical goods • Assessment of transactions volume, geographic footprint, FX risk • Risk based pricing • Commercial background of managers and corporations (how long in business, in industry)

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