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ISOexpress® is built upon the TotalFinance® Application Framework.
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.
View a Screenshot
...or read on to find out more about ISOexpress®...
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!
The ISOexpress Underwriting Engine Process is broken up into several
components that are designed to work together over time:
- First, the Underwriting Engine profiles the merchant by analyzing MCC,
Merchant Type, Time in Business, Annual Volumes, Ticket Size, Swipe/Non-Swipe, etc.
- 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.
- 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.
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 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 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 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.
For pricing information, please contact
Sales, or see the Contact Us page for
telephone numbers.
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.
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