Onboarding Process

• Key concepts to know about the onboarding process

  There are many concepts and stakeholders involved in the merchant onboarding process. Here are a few you should be aware of:

  Merchants: Merchants are individuals or businesses looking to set up a payment system that will accept and manage customer transactions for the sale of goods or services. These businesses can belong to different industries, have an in-person or online store and be of any size. The merchants seek out payment service providers to provide payment processing solutions for their customers through various channels such as online, in-person and mobile payments.

  Payment Service Providers: Payment Service Providers (PSPs) are companies that provide payment processing solutions to merchants. Moneris offers merchants a full suite of unified payment solutions, 24/7 support, and onsite field services.

  Acquirer: An acquirer is typically a financial institution that is licensed by Card Networks (e.g. Visa, Mastercard) to offer card acceptance and processes credit and debit card transactions for merchants.

  Issuer: Issuers are financial institutions that are authorized to offer consumers various payment types in the form of debit cards, credit cards, or physical and virtual prepaid cards. These cards are used at the point of payment for goods and services at a merchant’s business.

  Payment Card Network Operators : Payment Card Network Operators (PCNO) establish procedures and standards for card use and acceptance, playing an important role in facilitating the interaction and settlement of transactions between the acquirer and the issuer. Card processing networks include Mastercard, Visa, Discover, Interac, UnionPay, and American Express.

  Regulatory Bodies: Regulatory bodies such as the Payment Card Industry Security Standards Council (PCISSC), Financial Consumer Agency of Canada (FCAC), and Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) create and enforce rules and regulations surrounding payment processing in Canada . They ensure that all processes are secure and safe for customers and businesses and uphold payment standards and the interests of participants.

  Know Your Customer (KYC): Know Your Customer (KYC) is a regulatory process that involves following guidelines to verify customers' identity and financial profile. KYC is a crucial step within the onboarding process as it helps gauge the associated risk of partnering with individuals and businesses, before establishing a business relationship with them. The goal of the KYC process is to prevent identity theft, fraud, money laundering, terrorist financing and other financial crimes.

   
• What happens behind the scenes from application to acceptance?

  After you submit your application, we carry out reviews and assessments to ensure that your application and business are compliant with the applicable regulations and standards. This helps us make an informed decision about your application.

  Here’s an overview of the assessments that go on behind the scenes:

  Application review
  We review the information you provide during your application such as the details about you, your business, projected processing volumes, business model and ownership structure. We also validate that you meet the requirements and that our services are a good fit for your business.

  Identity Verification
  As part of the KYC process, merchants may be required to provide information such as personal identification and business registration documents, for verification by Moneris and the acquirer.  Adhering to KYC practices helps us establish trust, mitigate risks, and foster a secure processing environment for our merchants.

  Compliance and risk assessment
  Moneris or the acquiring bank conducts compliance and risk assessments as part of Card Network and regulatory requirements which may involve processes like information verification, background checks, and credit checks. The degree of assessment is determined by several factors such as the business industry type, transaction history, geographical location, and risk exposure. The goal of these assessments is to ensure that we are establishing relationships with legitimate businesses and maintaining ethical practices.

  Credit Adjudication
  This process involves the evaluation of all information and documentation provided by the merchant during their application to assess their creditworthiness. A decision is made on the merchant’s application based on the outcome of this evaluation.

  Ongoing Monitoring
  Once your application has been approved and the onboarding process completed, Moneris and acquirers continue to monitor your business activities as required by regulators. The goal of this is to ensure that businesses remain compliant with legal, card network, and regulatory requirements, and promptly identify potential risks.

• What information to prepare before you get started?

  After you complete and submit your application, Moneris may request some of the following documents to be provided as a part of the approval process. This information is not always required and is dependent on the business needs and nature of your business.

  Business registration documents & Ownership information
  Business registration documents help Moneris validate that the business is registered within the stated jurisdiction. The business number and legal name of the entity must be present on the business registration document. Businesses must provide information about their ownership structure including details about owners, partners, and directors with equal or more than a 2% direct or indirect share of the business.

  Financial statements
  The most recent two-year financials of the business may be required for Moneris  to understand the financial activities and performance of your business. Financial statements typically include the following: a balance sheet, income statement, cash flow statement and a notes section. We take the  security of your information seriously and only use it for the specific purpose for which it was collected .

  Banking Information
  Merchants need to provide banking information such as transit number, institution number and account number. The banking information is required to settle and deposit funds. This can be a personal or business account, depending on the legal structure of the merchant’s business.

  Business licenses, permits and compliance documentation
  Moneris may require copies of licenses or accreditations issued by the appropriate government authority to validate the business is licensed and compliant to operate in the region it is providing services to.