Business Question Dictionary Referral Partner/Parent Affiliation Are any fees to be billed to someone other than the contact listed in the header? Answering 'Yes' to this question will allow you to set up fee payment to a point of contact other than what you/ve specified while filling out this project. Answering '' will act as a shortcut for you. Fact Sheet Monday, January 9, 2017 Page 1 of 37
Are disbursements being used to support an aggregation model? Partner uses own account to permit participation but merchants deliver goods & services. Choose to this question if disbursements are being used to pay commissions. If Disbursements are being used to share the proceeds of transactions within an organization, choose yes. We ask this question about disbursements because it is a common reason why disbursements are employed inside a program and because use of disbursements for this purpose present a significant regulatory consideration. Some customers try to use creative ways of collecting all the money into their own merchant account and then sharing it out as they see fit within an organization of merchants that they believe belongs to them Thing is the merchants DON T belong to them according to Visa, MasterCard, American Express, or Discover. When a company tries to use their own merchant account to allow its users to sell stuff on consignment, using their tools, or whatever, that is called aggregation. And these companies aren t allowed to do it. ( matter what kind of great tool or idea they ve come up with.) That is why we are asking this question point blank. To get disbursements within a merchant organization set up, you ve got to check this box. This box then drives an approval need by Compliance. Implementations needs to know in order to set this program up correctly Compliance needs to know why disbursements are being done TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet Compliance approval is needed to perform approvals within a merchant affiliation because the usual reason for this ask is for programs to do something they are not normally allowed to do by Card-Brand regulation. Monday, January 9, 2017 Page 2 of 37
Describe nature of relationship between this company and affiliations under them. Please limit response to 255 characters. Please describe why this company is in contact with the affiliations underneath them-what is the nature of their relationship? Legal Risk TIF-Card Program Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Form Do merchants need to void captured transactions? ProPay is unique in that we allow most merchants to void transactions even after they've captured them. Once a transaction has been sent through to settlement, it can no longer be voided though. Some merchants require very predictable patterns for when transactions can be voided. Meanwhile, ProPay reserves the right to send transactions through the card-brand networks multiple times per day so that we do not delay the money coming back to us. Given our mutliple settlement times, we give merchants the option to have us just disallow voids after the merchant has captured the transaction. (Customers can still issue refunds.) Additionally, as part of negotiating a very large merchant deal, ProPay's Finance team may INSIST that the voiding of captured transactions be turned off especially if that merchant wants us to speed up the settlement process of funds into their account. Implementations Team needs to know this to set it up correctly on production TIF Monday, January 9, 2017 Page 3 of 37
Does partner want a co-branded sign-up page? Does the customer want the page where their customers sign up to be co-branded with ProPay and the customer in question? Does partner want to arrange the contracts for affiliations underneath them? Partner will arrange for signatures. Should this partner manage the contract and signatures with the affiliations under them rather than having the affiliations under them deal directly with ProPay? Legal TIF-Card Program Card Program Agreement Request Form Card Program Fact Sheet Monday, January 9, 2017 Page 4 of 37
Does this partner require special reporting? There are some reports (most come together to form the ProFac Reporting Suite) that can be requested. If you choose "yes", you will get to choose which reports should be sent to the client. Report Request Matrix Enter MasterCard facilitator ID Certain facilitators somehow end up on MasterCard s radar and then MasterCard requires that they be registered. MasterCard then assigns the company a Payment Facilitator ID and we have to plug it into our system. This is where you enter the ID MasterCard has assigned to your customer. Implementations team needs to know the payment facilitator ID, if there is one, to set it on the affiliation TIF-Parent Affiliate If email, enter destination email address here. If email, enter destination email address here. Monday, January 9, 2017 Page 5 of 37
If it should be sent in any frequency other than daily, define here. By default, this report is sent on a daily basis. If, for any reason, this report should be sent in another frequency (weekly, monthly, etc) enter that frequency here. If it is to be sent daily, you can leave the answer to this question blank. Implementations Team/Sales Engineer Report Request Matrix If it should be sent in any frequency other than daily, define here. By default, this report is sent on a daily basis. If, for any reason, this report should be sent in another frequency (weekly, monthly, etc) enter that frequency here. If it is to be sent daily, you can leave the answer to this question blank. Implementations Team/Sales Engineer Report Request Matrix Monday, January 9, 2017 Page 6 of 37
If it should be sent in any frequency other than daily, define here. By default, this report is sent on a daily basis. If, for any reason, this report should be sent in another frequency (weekly, monthly, etc) enter that frequency here. If it is to be sent daily, you can leave the answer to this question blank. Implementations Team/Sales Engineer Report Request Matrix If it should be sent in any frequency other than daily, define here. By default, this report is sent on a daily basis. If, for any reason, this report should be sent in another frequency (weekly, monthly, etc) enter that frequency here. If it is to be sent daily, you can leave the answer to this question blank. Implementations Team/Sales Engineer Report Request Matrix Monday, January 9, 2017 Page 7 of 37
If it should be sent in any frequency other than daily, define here. By default, this report is sent on a daily basis. If, for any reason, this report should be sent in another frequency (weekly, monthly, etc) enter that frequency here. If it is to be sent daily, you can leave the answer to this question blank. Implementations Team/Sales Engineer Report Request Matrix Is ProPay to charge any additional or miscellaneous fees to this partner? Several fees listed under this category. Are there any fees that have not been mentioned that will be charged to the client? Legal Several fees listed under this category, including: Monthly Customer Service Fee Daily Detail File Fee Certification Testing Fee Monday, January 9, 2017 Page 8 of 37
Is there to be a revenue share with this partner? This feature allows for a prefix on the info we pass during authorization to the card brand. The prefix is used to define part of the merchant descriptor, a value that typically appears on the credit card statements of cardholders when our merchants process their credit or debit cards. Implementations team needs to know to set up this option up. TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet If you don t sent one of these, the default starts with PP* Remember that the value we pass in its entirety is only about 28 characters long, includes ten digits worth of phone number and one of the following: 1. First and last name on the ProPay account 2. Email 3. DBA The point is, you don t get much to work with. If you make this too long, then not much of a, b, or c is going to show up (which you may not care about but there you have it.) Finally, banks are not required to put what we pass to the card brands on their own statements. USUALLY what we have in here works, but we pass a bunch of data during auth and banks are free to describe transactions however they wish. Monday, January 9, 2017 Page 9 of 37
Is this a MasterCard registered facilitator? Certain facilitators somehow end up on MasterCard s radar and then MasterCard requires that they be registered. MasterCard then assigns the company a Payment Facilitator ID and we have to plug it into our system. When any merchant under this facilitator processes a MasterCard, the Payment Facilitator ID is passed as part of the authorization message. Who knows what MasterCard does with this. We are just told we have to do it. In most cases, you can choose to this question. You will know about it if the answer is Yes. Implementations team needs to know the payment facilitator ID, if there is one, to set it on the affiliation TIF-Parent Affiliate Select 835 Deposit Detail report. This report contains the details of sweeps that have been performed under the affiliation. By default, this report is sent on a daily basis. Report Request Matrix Select Comprehensive Risk Chargeback Report. Monday, January 9, 2017 Page 10 of 37
Select Daily Deposit Detail report. This report contains the details of sweeps that have been performed under the affiliation. By default, this report is sent on a daily basis. Report Request Matrix Select EnsureBill Report. Select Interchange Qualification Report. For customers on a cost-plus model-this report will show clients our cost. Report Request Matrix Select Parent Affiliate ACH Return Report. Select Parent Affiliate Comprehensive Risk Retrieval Report. Select Parent Affiliate Comprehensive Transaction Detail Report. Monday, January 9, 2017 Page 11 of 37
Select ProFac Residual Statement Report. This report shows the breakdown of a residual that has been paid to a partner. This allows the partner to see the breakdown of the revenue share that they are receiving. Report Request Matrix Should accounts under this partner have sweeps performed? Sweeps are a process whereby, on a scheduled basis, all monies that have funded into a ProPay account are automatically withdrawn and sentout to that accounts on-file bank account. If you select yes, you will be asked to enter a frequency. needs to know this because customers need to understand the implications of sweeps on their ability to perform certain types of transaction. Additionally, the Sales Engineer may determine that it will be important to send a sample of reports that accompany sweeps if the customer intends to read those reports into their own system. The Implementation Team will need to know in order to set up those sweeps. TIF Fact Sheet Frequently set to Yes for corporate accounts. Monday, January 9, 2017 Page 12 of 37
Should accounts under this tier be allowed to process ACH payments? Should the account holder have the ability to process ACH payments? will need to help teach the customer how to do this Implementations Team TIF Yes If yes, Legal approval will be required Should accounts under this tier be allowed to process credit cards? Should merchants signed up under this tier be able to charge credit cards? Implementations Team TIF Monday, January 9, 2017 Page 13 of 37
Should accounts under this tier be non-expiring? If the accounts should be set to expire each year, choose no. If the account should never expire, and never be renewed, choose yes. Pricing Committee Implementations Team TIF Fact Sheet Yes If yes, Pricing Committee approval will be required, Frequently set for "corporate" accounts. Should KYC be performed on new accounts? t "ProFac Gold" Should ProPay perform Know Your Customer to validate accounts? Risk TIF-Parent Affiliate Payment Facilitator n-affiliation Fact Sheet Yes If no, Risk approval will be required If yes, this would not be considered ProFac Gold. Monday, January 9, 2017 Page 14 of 37
Should partner have ability to edit accounts via API? There are a large number of account settings that can be edited. Highlights include: The on-file banking info (useful for facilitators who want to host this last piece of functionality normally only available on our own website) The address and contact info Passwords to log into our website Some services that can control risk by preventing customers from moving money out of an account when fraud is discovered. There are significant security implications of allowing this feature, so use of the ProPay API to edit accounts creates the need for a significant change to technical integration and drives our Legal team to a specific contract addendum that indemnifies us. The technical integration for this feature is also quite a bit more difficult than normal use of our API because of controls we have put in place to harden our system against changes to accounts. (We wouldn t want people to be able to steal a credential then change ProPay accounts on-file bank just before money is swept out of those accounts.) Risk needs to know this for the reasons stated above Legal needs to know this because of the need to add an addendum to the contract that indemnifies ProPay. s need to know this so that they can set the affiliation up properly and train the customer on the extra integration steps needed to make this work. Implementations Team must know this in order to set the affiliation up properly in production Fact Sheet TIF Risk (see above) Legal (see above) If yes, client will need to sign X509 Monday, January 9, 2017 Page 15 of 37
Should ProPay validate EIN? Should ProPay do a business validation rather than a personal validation? With a business validation, the EIN will be run through the system to validate. If you choose no, social security numbers will be validated. Risk Implementations Team TIF Fact Sheet Yes If yes, Risk approval will be required Should Risk notices be sent to the partner rather than individual merchants? Should they have the ability to issue credits? Should the merchant have the capability of distributing credits? Risk TIF Fact Sheet Yes If yes, Risk approval will be required Typically not an option for affiliates. Monday, January 9, 2017 Page 16 of 37
Should this be sent via email rather than SFTP? Reports can be sent to a particular email address or be set up on a secure page where only pre-determined IP addresses can access them. Please define which option the client prefers. Report Request Matrix Should this be sent via email rather than SFTP? Reports can be sent to a particular email address or be set up on a secure page where only pre-determined IP addresses can access them. Please define which option the client prefers. Report Request Matrix What is the billing city, state and zip code? City, State Zip What is the billing city, state and zip code of the person who is responsible for making payments? Payment Facilitator n-affiliation Fact Sheet Monday, January 9, 2017 Page 17 of 37
What is the billing street address of payee? What is the billing street address of the person who should receive the revenue share? Payment Facilitator n-affiliation Fact Sheet Please just enter the street address. City, State and Zip will be asked for next. What is the billing street address? What is the billing street address of the person who is responsible for making payments? Payment Facilitator n-affiliation Fact Sheet Please just enter the street address, city, state and zip will be asked next. Monday, January 9, 2017 Page 18 of 37
What is the certification and testing fee? leave blank if none or enter 'ne' Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Form If none, leave blank or enter none. What is the city, state and zip code of the payee? What is the billing city, state and zip code of the person who should receive the revenue share? Payment Facilitator n-affiliation Fact Sheet Monday, January 9, 2017 Page 19 of 37
What is the contact email address of the payee? What is the contact email address of the person who should receive the revenue share? Payment Facilitator n-affiliation Fact Sheet What is the daily detail file fee? leave blank if none or enter 'ne' Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Form If none, leave blank or enter none. Monday, January 9, 2017 Page 20 of 37
What is the disbursement per transaction fee? What will the partner be charged for each disbursement? Legal Partner/Parent Affiliate Agreement Request Form Payment Facilitator n-affiliation Fact Sheet Yes If <0.1, Pricing Committee approval will be required What is the frequency of the sweeps? We just need to know how often sweeps should occur. Typically, this is set to Daily Just enter Daily, Weekly, Monthly or whatever. Implementations team needs to know in order to set up the sweep job TIF NA Monday, January 9, 2017 Page 21 of 37
What is the load fee? Typically only assessed if using to pay commissions. Typically only assessed if using to pay commissions. What is the monthly customer service fee? leave blank if none or enter 'ne' Legal Partner/Parent Affiliate Agreement Request Form Payment Facilitator n-affiliation Fact Sheet Leave blank if none or enter 'ne' If none, leave blank or enter none. Monday, January 9, 2017 Page 22 of 37
What is the payment contact email? What is the email of the person who will be responsible for making payments? Payment Facilitator n-affiliation Fact Sheet What is the payment contact name? What is the name of the person who will be responsible for making payments? Payment Facilitator n-affiliation Fact Sheet What is the payment method type? Checking, ProPay-ProPay, Pay-by-Check How will the payments be made? Payment Facilitator n-affiliation Fact Sheet Checking, ProPay-ProPay, Pay by check Monday, January 9, 2017 Page 23 of 37
What is the ProtectPay extraction per transaction fee? What is the extraction per transaction fee that will be charged for ProtectPay? Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Yes If <0.1, Pricing Committee approval will be required What is the ProtectPay monthly fee? What is the monthly fee that will be charged for ProtectPay? Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Monday, January 9, 2017 Page 24 of 37
What is the ProtectPay per transaction rate? What is the per transaction rate that will be charged for ProtectPay? Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Yes If <0.03, Pricing Committee approval will be required What is the ProtectPay setup fee? What is the fee that ProPay will charge to set up ProtectPay? Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Monday, January 9, 2017 Page 25 of 37
What is the ProtectPay storage rate? What is the storage rate that will be charged for ProtectPay? Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Yes If <0.01, Pricing Committee approval will be required What is the requested referral ID? Must be 7 or 8 characters long. Leave blank if no preference. TIF-Parent Affiliate Must be 7 or 8 characters long. Leave blank if no preference. Monday, January 9, 2017 Page 26 of 37
What is the spendback per transaction fee? What is the fee that will be charged per transaction for Spendback? Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request What is the SplitPay per transaction fee? What is the fee that will be charged for each transaction for SplitPay? Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request Monday, January 9, 2017 Page 27 of 37
Who is the revenue share payable to? What is the name of the person who should receive the revenue share? Payment Facilitator n-affiliation Fact Sheet Will partner automate reversals of SplitPays via API? Alternately, merchants do their own refunds. Legal Payment Facilitator n-affiliation Fact Sheet Partner/Parent Affiliate Agreement Request TIF-Parent Affiliate Monday, January 9, 2017 Page 28 of 37
Will partner board merchants via API? API signups also benefit the partner in the following ways. Among these are: The partner is free to create their own signup experience so long as they are prepared to require the fields required by ProPay, and understand that ProPay s automatic underwriting requirements still exist. When a partner sends a request to the ProPay signup API, he or she gets back a response that contains everything needed to begin processing on behalf of a new account holder. Use of other signup methods requires that the partner obtain information about each account from the account holders themselves. API signups, however, create a technical/integration burden for customers. Carefully consider what the best choice is for this affiliate partner. needs to know that API signups will be used so that the customer can be trained and things can be set up correctly on test. Implementations needs to know that API signups will be used in order to set the customer up correctly on production. TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet Partners have a large number of optional values that can be passed using the signup API. Here are a few you may not have known about: The INITIAL password can be set by the partner. Users who will log in to the ProPay website are still required to set their own password the first time they arrive. Banking information attached to the ProPay account can be set. Payment for the ProPay account can be passed either as a credit card number, or as a ProtectPay token. Remember, if accounts aren t to be free, and if the partner wants to immediately begin processing onto new accounts, they had better collect payment info. Monday, January 9, 2017 Page 29 of 37
Will partner board merchants via FILE? Use of files to board new merchants is somewhat rare. File-based signups can be useful for an initial load, but a big administrative burden long-term. (See additional notes for some reasons why this might not be the best solution for your partner.) Remember, too, that these aren t just any old file your customer wants us to plop into our system. Customers must conform to the ProPay spec which requires very specific info about each new merchant, and which must be provided in a specific format. needs to know that file-based signups will be used so that the customer can be trained on our required format. Implementations needs to know that API signups will be used in order to set the customer up correctly on production. Legal needs to know about file signups Risk needs to know about file signups TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet Legal must approve file-based signups because reasons! (I don t know but they say they do.) Risk needs to approve file-based signups because they bypass our automated underwriting. ProPay will only process files during normal business hours. Frequently, ProPay s Legal or Risk team will require that they review each file before allowing it to be processed. File signups bypass ProPay s automatic risk Analysis. Monday, January 9, 2017 Page 30 of 37
Will partner board merchants via ProPay website? Many partners still use ProPay s website to sign up new merchants. We can, in fact, co-brand our signup experience for partners that wish it. needs to know that API signups will be used so that the customer can be trained and things can be set up correctly on test. Implementations needs to know that API signups will be used in order to set the customer up correctly on production. TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet While web signups are very easy to implement, by a partner, remember that the partner may want to facilitate payments for new merchants eventually using their own shopping cart/portal/system. In order to do that, the partner needs to know info about each new merchant. (Makes sense, right?) If using web signups, consider how the partner is going to obtain info about each merchant and have that info plug-in to their own system. Monday, January 9, 2017 Page 31 of 37
Will partner do enhanced spendback? Can pull from pending balance. Enhanced Spendback is a subset of normal Spendback that allows partner organizations to pull money from accounts under its program which has not yet funded. It is important to understand that, in order for ESB to work, the source accounts still have to have funds in their Pending balance (They have processed a credit card, but ProPay has not yet made the funds available.) Furthermore, ESB requires that the pending plus available balance is sufficient to cover all ESB transactions. Legal Risk SE needs to know to teach customer how to work with Enhanced Spendback Implementations team needs to know in order to set this up in production Payment Facilitator - n-affiliation Fact Sheet TIF-Parent Affiliate Partner/parent Affiliate Agreement Request Form Legal approval Risk Approval ESB transactions drive the available balance on source accounts negative. The pending balance remains positive until ProPay funds when the pending balance goes to 0 and the available balance goes to previous pending plus the current negative balance in available. The recipient account doesn t get ESB funds immediately into their available balance upon initiation of the transaction. Instead, the recipient s pending balance goes up until the source account is funded. At funding, the recipient s pending balance goes to 0 and its available balance goes up by the amount previously held as pending. Monday, January 9, 2017 Page 32 of 37
Will partner do spendback? Taking money from merchants not part of a specific transaction. Processing feature How will this company process transactions? Please engage a Sales Engineer resource to help design a facilitator model that works for your customer. As the sales rep understands the nature of the specific Profac, he or she should select, from the PMA, the correct transaction types/processing features. Spendback: Money that exists in a ProPay account can be pulled from a member account to a second account owned by the facilitator. Remember, while SplitPay allows the facilitator to take money from a transaction (and, as a result does not require that money be maintained in an account in order to work) Spendback requires that money be maintained in the source account. This has significant impact on whether or not sweeps will work with these accounts. needs to know that Spendback is going to be used in order to train the customer and set them up correctly on test. Implementations needs to know that Spendback is going to be used in order to set the customer up correctly on production. TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet Typically, Spendback carries a cost of 1% as a money-making instrument for ProPay. Will partner perform disbursals? For commissions to a merchant or to automate sharing of sales proceeds. This is for commissions to a merchant or to automate sharing of sales proceeds. Payment Facilitator n-affiliation Fact Sheet TIF-Parent Affiliate Monday, January 9, 2017 Page 33 of 37
Will partner perform Splitpay against its merchants' transactions? Processing feature How will this company process transactions? Please engage a Sales Engineer resource to help design a facilitator model that works for your customer. As the sales rep understands the nature of the specific Profac, he or she should select, from the PMA, the correct transaction types/processing features. SplitPay: A portion of a credit card transaction can be pulled away from the merchant of record/processing account to a second (but not third) account when that transaction is funded into the processing account. needs to know that SplitPay is going to be used in order to train the customer and set them up correctly on Integration. Legal needs to know because there are specific contract changes to the affiliate agreement when the partner is going to use SplitPay TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet Partner/Parent Affiliate Agreement request form Legal needs to approve SplitPay because they will need to have made sure that the correct affiliate agreement has been executed. Will partner use ProtectPay for processing onto their merchants? Will ProtectPay be used for processing? Compliance TIF-Parent Affiliate Payment Facilitator n-affiliation Fact Sheet Yes If no, Compliance approval will be required Monday, January 9, 2017 Page 34 of 37
Will they use Hosted Payments Page? Will the client be using the Hosted Payments Page? Compliance TIF-Parent Affiliate Payment Facilitator n-affiliation Fact Sheet Yes If no, Compliance approval will be required Monday, January 9, 2017 Page 35 of 37
Will this partner attempt to host their own merchant experience? ProPay is hidden from the merchant. Some partnership arrangements include a solution where the entire ProPay experience (websites) is hidden from its merchants. If you choose this solution, you have MUCH to consider: Signups (this one is obvious.) Customer Service. Who do merchants with questions call? Some questions might be about the ProPay account, while others are about the experience hosted by our partner. The solution must consider this and guide merchants as appropriate. Providing reports to merchants becomes the responsibility of the partner. How do they do that? Where do they get the data to create reports from? They will know some data points before we do, and we will know some data points before they do. How to combine all data into a single experience? Giving the ability to change settings on accounts (including the all-important changes to bank accounts) There are also legal implications because our sponsors and back-end partners require ProPay merchants to agree to certain terms. How those terms must be communicated to merchants when customer-partners want to host their own experience becomes a significant consideration. Implementations needs to know in order to set this program up correctly Account Management needs to know how to support this program Legal needs to know (and approve) because of the above-mentioned issues with sponsor partnerships needs to know because that team member will be heavily involved in answering the how of the above considerations. The SE will also ensure that the partner adequately integrates solutions for all of the above. TIF-Parent Affiliate Payment Facilitator - n-affiliation Fact Sheet Partner/Parent Affiliate Agreement request form Account Management Engagement form Legal approval is required because of the sponsor banking contractual needs mentioned above. Monday, January 9, 2017 Page 36 of 37
Will this partner create software that other affiliations will use? As opposed to acting simply as a referring partner/iso. Will this client be creating software for the affiliations under them, rather than acting simply as a referring partner/iso? TIF-Parent Affiliate Monday, January 9, 2017 Page 37 of 37