Merchant aggregation is growing in popularity as way to reduce friction in the boarding process and streamline pricing and funding merchants who are aggregated under a single master merchant account by a Payment Facilitator.
While the risks for aggregating merchants aren’t necessarily greater than traditional acquiring methods, they are different and can be managed. With the right systems, and policies and procedures for underwriting, fraud and compliance in place, Payment Facilitators are taking advantage of the flexibility this model offers.
Rich Consulting has worked with Payment Facilitators for more than 15 years and consults on the subject with acquirers, Independent Sales Organizations, Software as a Service developers and mobile and online payments providers. The firm teams with Double Diamond Group to offer a full suite of strategy; product, market and business development; and risk management services for payments aggregators. Together they have worked with more than 75 Payment Facilitators and companies interested in implementing frictionless boarding strategies.
Rich Consulting can help companies evaluate whether aggregation is the right business strategy. The firm has unmatched experience in conducting competitive, price and opportunity analysis and developing business cases for potential Payment Facilitators.
Not all acquirers have the expertise and/or systems to work with merchant aggregators. Rich Consulting has the relationships and know-how to guide potential aggregators through the process of identifying and selecting the right sponsorship partner.
The fundamentals of good underwriting and fraud monitoring are the same for all acquiring models. However, merchant aggregation requires different methodologies and techniques to remove friction, while also mitigating risk and ensuring compliance. Rich Consulting works with Payment Facilitators to develop template or custom underwriting and risk monitoring policies and procedures that take into account multiple factors including a client’s risk tolerance, key markets, business goals and more.
Merchant aggregators have unique needs when it comes to managing sub-merchant operations. Whether choosing off-the-shelf or custom tools and systems to monitor sub-merchants, manage transaction risk, fund sub-merchant bank accounts and more, Rich Consulting provides invaluable guidance on critical system requirements, design and implementation.
It’s imperative that Payment Facilitators operate with the right systems, policies and procedures in place to limit fraud and ensure card scheme compliance. Failure to do so can result in significant loses and fines, or other actions by the card schemes. Rich Consulting proficiently conducts thorough reviews of risk and operational departments, policies and vulnerabilities against card scheme rules and industry best practices to identify areas for improvement or remediation.