ISOexpress® is built upon the TotalFinance® Application Framework.

 

Problems in the Industry...
Investigations demonstrate that this industry's largest losses have resulted mainly from the following:

• Not adequately screening new businesses. It has been found that the industry's largest number of losses result from this issue.
• Stolen identities. These are businesses opened for merchant service processing, based on stolen owner identities. While these losses are few, they are typically the largest in size.
• Jewelry stores involved in fraud rings.
• Large tickets and volumes where the Merchant's financial resources are diminished, and can not service products or handle returns, resulting in chargebacks and, ultimately, an out-of-business merchant.
• Lack of site inspection.
• Merchants who develop financial problems during the course of contract.

 

ISOexpress® eliminates losses caused by fraud by addressing all of these problems with due diligence.

 

ISOexpress Underwriting

ISOexpress is designed to gather new merchant application information from various types of users (merchants, owners, co-signors, agents, internal/risk processors, etc.), automatically underwrite the account, and do so in such a way as to allow the account to be re-underwritten over time.

 

Creditdiscovery's experience has shown that large losses often come from well-established merchants who get into financial trouble and ultimately commit fraud in an effort to solve their financial situation. Ongoing merchant re-underwriting is an effective early warning system designed to identify these merchants. The acquiring industry, as a whole, has started the move toward a "re-underwriting risk model" for risk assessment. Large acquirers like JP Morgan Chase, Nova, NPC, and others, are now building systems designed to measure on-going risk, by using re-underwriting processes and procedures.

 

Creditdiscovery's ISOexpress system is the ONLY product on the market today that is capable of both originating and re-underwriting portfolios from a credit perspective. This product is unmatched in the industry!

 

ISOexpress Underwriting - Process Flow

The ISOexpress Underwriting Engine Process is broken up into several components that are designed to work together over time:

 

 

1. First, the Underwriting Engine profiles the merchant by analyzing MCC, Merchant Type, Time in Business, Annual Volumes, Ticket Size, Swipe/Non-Swipe, etc.
2. The Engine, using the Merchant's and Guarantors' data, makes inquiries against several databases, including the credit repositories, the Social Security Administration, the DMV, MATCH, OFAC, known fraud ring databases, and others. Next, the Engine pulls Credit Reports and analyzes the results.
3. Finally, the Engine combines the above informational components, and attempts underwriting. If, during the underwriting process, it is determined that more information is needed, (i.e. the Engine needs financial statements in order to assess Net Worth), then exceptions are thrown into the Re-underwriting Work Queue (RWQ). Once data is provided by the user to satisfy the Exception(s), the data is collectively analyzed and recombined with the previously noted informational components. The account is then re-underwritten.

 

ISOexpress Re-underwriting

The division of "merchant application data into components" allows that some of the components be updated with new information. Subsequent re-underwriting efforts thus enable the Engine to make a brand-new decision using previous data combined with updated data.

Over time, a merchant's credit information and financial status changes. ISOexpress registers with the Credit Repositories so it can monitor the Merchant's credit profile. Additionally, ISOexpress can request and receive updated merchant documents over time. For example, we may request that the Merchant submit financial statements twice each year, or we may perform a new One-Year Bank Rating once each year. As the Merchant's credit and financial information changes, and is received by ISOexpress, the Merchant is re-underwritten, and merchant portfolio risk is thereby reassessed.

 

ISOexpress Website Assessment

ISOexpress uses an Artificial Intelligence Engine designed to scan Merchant Website pages and identify Visa/MasterCard restricted content. This engine easily identifies adult content sites, travel agencies, check cashing facilities, etc., by scanning website content. At the time of original underwriting, ISOexpress obtains a URL from the user, identifying the website used by the Merchant for conducting e-commerce. The ISOexpress Artificial Intelligence Engine scans this website monthly, and makes sure that the website maintains a compliant content profile. For more information, see the Site Scan page.

 

ISOexpress Account Rating

ISOexpress is connected to the ATM network, and obtains a bank rating once each month for each merchant it monitors. This rating identifies bank accounts with elevated NSF activity, or negative balances, and is a good indicator that something could be wrong with the settlement account. For more information, please see the Account Verification page.

 

ISOexpress Transaction Risk Assessment

ISOexpress uses a statistical engine to watch for transaction fraud. It overlays several statistical layers including seasonal, industry, and regional trends which are then influenced by a rolling three-month prior transaction model based on the Merchant's stated or actual behavior trends. This model is highly accurate in predicting future transaction behavior. Over the top of this model, the Risk Engine runs seventeen predictive algorithms to score daily transactions. Once these transaction scores are summed, they can be used to produce a list of Merchants considered to be behaviorally high-risk. These Merchants, and the questionable transactions, are dropped into a Review Queue, and the user is allowed to view the transactions and past transactional history, thus enabling a Risk Processor to investigate further.

 

How Much Does it Cost?

For pricing information, please contact Sales, or see the Contact Us page for telephone numbers.

 

Support

Creditdiscovery's help desk is open every day of the year, 24-hours a day. To reach the help desk, please call (877) 789-4976.