Accelerate Time to Board and Reap Rewards

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February 7, 2022

You’re Ignoring Revenue if You’re Not Using Automated Scorecards

 

As a PayFac, growing your revenue depends on a number of factors, including choosing the right market focus, providing merchants with a frictionless onboarding process, and a tight alignment between your sales and marketing teams. Eliminating friction during onboarding may be the most consequential of these factors as it has the greatest potential impact on customers. In short, you’re leaving money on the table if you aren’t offering automated underwriting during onboarding.

You will onboard more merchants at a greater speed if the undertaking is painless and free of the experiences that introduce friction into the process. Automated scorecards let you offer your merchants this frictionless process.

The speed of modern communications means that underwriting is the most time-consuming part of the onboarding process. It is also the most vital. Scaling back or doing away with the underwriting step would certainly lead to faster onboarding. It would also lead to financial ruin for any payfac that tried it. 

 

Fast, frictionless onboarding without increased risk

 

Merchant ScanXpress gives you scorecard automation that greatly accelerates your time-to-board without increasing your risk levels. This is because you can configure Merchant ScanXpress to your existing risk profile. The solution’s automatic scorecard presents your underwriters with recommendations based on the checks you’ve set. The result is that your underwriters are able to process applications much faster. Merchants experience less friction with the onboarding process, and they’re processing payments much faster than before, increasing your total revenue.

The revenue growth you can experience when you use automated scorecards isn’t theoretical. Use our ROI Calculator to see how much additional revenue your payfac could realize when you take friction out of the merchant onboarding process. To use the calculator, first input your Average Annual Sales per Merchant.

Next, move the first slider to indicate the Number of Basis Points of Net Revenue. You can set the slider anywhere between zero and 200 basis points.

Set the second slider with your current Time to Board (Days). Finally, input your Average Merchants Boarded per Year. The calculator will now show you Annual Revenue Per Merchant and Annual Revenue Per Merchant Per Day, as well as the Additional Net Revenue Gained by using Merchant ScanXpress.

The potential gains in revenue can be quite substantial. For example, say we have a payfac with the following statistics:

  • Average Annual Sales Per Merchant: $500,000.00
  • Number of Basis Points of Net Revenue: 80
  • Time to Board: 6 days
  • Average Merchants Boarded Per Year: 5,000
  • Annual Revenue per Merchant: $4,000.00

A payfac with these numbers stands to add capacity to the tune of $273,972.60 in additional net revenue! 


Decrease time to board and reap the rewards

 

The calculator itself can give you a big clue as to just how Merchant ScanXpress can help you access results like this. Try decreasing the Time to Board slider down to 1 day. Doing so will reveal that, if you’re onboarding this quickly, you would realize a net revenue gain of $0.00. This is because using Merchant ScanXpress drives your onboarding time down to one day or less!

Our ISO clients processes thousands of applications on an annual basis, relying on Merchant ScanXpress to power their automated underwriting and ensure each application is reviewed and rated appropriately. Since adopting to an automated underwriting process, our clients have realized a tremendous increase in speed. What once took them an entire day to underwrite ONE application, now takes 2.5 hours on average per app. Moreover, using Merchant ScanXpress, specific clients were even able to come to decisions on about 20 percent of those applications in less than an hour.

 

Remove friction and accelerate onboarding

 

Putting your focus on the right markets and ensuring your sales and marketing departments are on the same page will help you to grow your revenue, but friction in your onboarding process will inevitably limit your potential growth. Merchants who find your procedures painful and lengthy may abandon the onboarding process halfway through. Automated underwriting through customizable scorecards allows you to reduce the friction in the process to almost zero. This results in fewer abandoned applications and accelerates your onboarding efforts. 

Technology has allowed us to drastically cut communication times during onboarding, but underwriting has always taken up the lion’s share of the time needed to onboard a merchant. Simply skipping the underwriting step would certainly lead to disaster for any payfac that tried it. 

Merchant ScanXpress can sometimes cut the underwriting time for an application down to just a few hours, without increasing your risk levels. In short, we can get you there faster and we can get you there better.

Check out our ROI Calculator to see just how much revenue your payfac may be leaving on the table if you’re not using automated scorecards.

transform your underwriting process