Revolutionizing merchant risk management in payments

There’s a simple way to limit risk exposure while also enhancing merchant experience

In this evolving digital marketplace, it is crucial that payment providers strike the right balance between offering a streamlined customer experience and effectively managing merchant risk. However, with many still heavily reliant on data from traditional credit bureaus and manual collection processes, achieving this is much more challenging than it needs to be. Payment providers are in need of digital and transformative risk management solutions using real-time data from multiple sources.

The problem – manual onboarding and poor customer experience

Data collection is a time consuming process that is particularly prone to human error, as financial statements are often exchanged via email or long input forms. This is not only bad for business as significant resources are required to assess applications, but it also makes for a poor customer experience that can cause merchants to take their business elsewhere. 

Oftentimes, the financial information shared during the onboarding process only provides limited visibility into the performance of a business and is regularly outdated by the time of receipt. 

Without a way to access accurate, up-to-date, and highly contextual merchant data, payment providers are left with two equally unappealing options. They are either forced to apply generic mitigations across their portfolio and risk exposing themselves to substantial losses or introduce rigid and overbearing risk management principles that challenge their ability to accept new merchants and are damaging to customer experience. 

The solution – real-time access to merchant data

With real-time access to the systems merchants use to run their businesses everyday, payment providers can develop a better understanding of their customers which can be used to apply targeted mitigations, improve merchant experience, and ultimately reduce risk exposure across their entire portfolio. Via Codat, payment providers can deliver a painless onboarding experience by allowing customers to easily sync their financial data, taking the heavy lifting out of manual document collection. 

Connecting to accounting, banking, and commerce sources is the only way for payment providers to extract optimum value from their merchants’ data. Via our single API, providers can automatically extract financial statements from twenty of the world’s leading accounting software packages. This can be bolstered with bank account data which provides real-time insight into a business’s identity and bank transaction profile. Connecting to eCommerce and payment platforms can offer additional contextual information such as potential chargebacks from other providers and much more. With such a detailed view of the merchants’ financial performance, payment providers can make faster and more informed decisions with confidence.

In a nutshell

Working with Codat enables payment providers to:

  • Take the heavy lifting out of manual document collection by allowing merchants to easily sync their bank account, eCommerce, payments, and accounting data 
  • View financial statements in real-time and ongoing basis to minimize risk
  • Bolster their understanding of their merchant customers by viewing chargebacks from other eCommerce and payment providers
  • Determine how likely a merchant is to experience loss of fees by drilling down into particular supplier relationships and viewing merchant bills

If you would like to learn more about how Codat could help, please feel free to contact [email protected] or start your free trial today.