Inktavo Underwriting Information and FAQ – Inksoft

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In payment processing, merchant underwriting is a risk assessment every merchant undergoes before they can accept electronic payments.

Underwriters use documents to verify identity and credit history and assess an applicant’s financial status while ensuring the info provided is accurate.

When InkSoft processes transactions on behalf of a merchant, the Processing Bank, Payrix, is taking on a certain amount of risk. Processing a payment is like providing a business with a line of credit.
InkSoft, in partnership with the Processing Bank, will do their due diligence and assess a business’ merchant risk level before providing them with a merchant account. This process is called underwriting.

Automated tools and manual reviews are used to assess these factors and determine the risk level associated with a merchant. Depending on the outcome of the underwriting process, a merchant might be approved, approved with conditions, or denied payment processing services.

Below is a list of underwriting documents that may be used to determine eligibility for embedded payments.
Please note: This is not an all-inclusive list. In some instances, we may request additional documents not listed below.

Business Information

• Business registration details and documentation (i.e., SS4, Secretary of State (SoS) documentation, Articles of Incorporation, etc.)

• Location of the business, including physical and online presence (i.e., utility bill, lease agreement, website, etc.).

Business Model and Operations

• Description of the business's products or services, including delivery timeframes and refund and chargeback policies.

• Supplier or drop-shipper information (i.e., contracts, proof of delivery, proof of possession, etc.)

Compliance and Risk Assessment

• Anti-money laundering (AML) and know your customer/know your business (KYC/KYB) checks (SSN Card, SS4, Articles of Incorporation, Secretary of State (SoS) documentation, etc.)

• Evaluation of any previous history of fraud, excessive chargebacks, or legal issues.

• Validate owner and business against the list of Office of Foreign Asset Control’s (OFAC) Specially Designated

Financial Information

• Business financial statements (i.e., income statement, balance sheet, cash flow statement, bank statements, and/ or processing history if the business has previously accepted payments, etc.)

• Personal and/or business credit reports to evaluate creditworthiness.

FAQs

Why do you need a copy of my driver’s license and a selfie?

Identity theft is an increasing problem across the industry; millions of consumers and businesses are victimized yearly. In fact, identity theft cases where multiple individuals use the same or similar identity information increased from 4,063(2021) to 10,345 (2022).

As a result, it is essential that we help prevent accounts from being opened without customers'/companies' knowledge. Providing this information allows us to verify that the information on the account is legitimate (driver’s license) and that the person applying is the actual person applying for the account (selfie).

Why are you asking for my phone bill?

We can use a phone bill to verify your identity. By comparing the information on the bill with the information you provided during account registration, the payment processor can confirm that the information provided at signup is valid and accurate.
In addition, this step helps prevent fraud and unauthorized use of accounts. Fraudsters and scammers often create fake accounts using stolen or fabricated information. Requesting a phone bill can be a way to prevent this kind of activity. Legitimate users are more likely to have a genuine and recent phone bill associated with their account.

Why do you need a bank letter/voided check/bank statement?

Verifying your bank account is crucial for payment processors to ensure that the account is valid and belongs to you. A bank letter, bank statement, or voided check can help confirm your account details, such as your account number and routing number.
Because you are linking a bank account to your processing account, providing a bank letter, bank statement, or voided check can help establish the connection and verify ownership.

Why do you need a website on my application?

A website can provide transparency about your business operations, products, pricing, and terms of service. Payment processors may review your website to ensure your business meets their policies and guidelines.
In addition, your website content and business model can provide insights into the type of transactions you’ll be conducting, which helps the payment processor evaluate the potential risks and fraud.

Where can I find more information?

For more information, visit the Financial Crimes Enforcement Network.

If you have additional questions, please contact support@inksoft.com