Zoot Launches zMerchantSM Underwriting and Monitoring Solution
Solution proactively evaluates and monitors merchant risk
April 3, 2012
Zoot, a leading provider of advanced instant credit decisioning and loan origination solutions, today announced the launch of zMerchantSM underwriting and monitoring solution at the Merchant Acquirers’ Committee (MAC) 2012 Annual Conference. zMerchant is designed to efficiently evaluate new merchant applications in realtime for merchant acquirers, ISO’s and others seeking to establish new merchant accounts. Additionally, the solution proactively monitors merchant transactions and applies automated risk triggers to signal potential problems.
“Merchant risk does not disappear after the initial analysis. Zoot’s merchant acquiring clients recognize the importance of managing risk proactively beginning in underwriting and continuing throughout the life of the merchant relationship,” said Dennis Dixon, president of Zoot Enterprises. “zMerchant enables our clients to comprehensively evaluate new businesses and monitor their risk by leveraging Zoot’s business rules development tools and expertise in data integration.”
Zoot’s zMerchant solution gives acquirers access to a wide variety of business and consumer credit data as well as a wealth of alternative credit and fraud data. This gives merchant acquirers the flexibility to assess the risk of merchants differently. For established businesses pulling a business credit file is appropriate. For a small start-up, looking at the consumer credit history of the business principal(s) is a better option. Once the right data has been accessed, the merchant application can be originated according to the acquirer’s unique business logic.
When merchants demonstrate behaviors which may alter the risk initially assumed by the acquirer during the underwriting phase, it’s critical that the acquirer be able to respond quickly. To identify these risky behaviors, zMerchant enables acquirers to easily configure automated risk triggers based on their experience with leading loss indicators. For example, unusual sales activity and inconsistent transactions could lead to increased risk in the relationship. Through zMerchant, all the acquirer’s merchant transactions can be monitored and potential problems proactively addressed. When manual reviews are required to assess changes in behavior and consider options to mitigate merchant risk, the acquirer can gain efficiency by configuring manual review screens and business rules to consolidate information for quick resolution of risk triggers.
“The sophistication and the increase of fraud losses in the merchant space is reducing industry profits. The financial loss from a single merchant can range from thousands to even millions of dollars. It is essential that merchant acquirers and ISO’s continually monitor and evaluate their merchants and quickly react to credit and fraud risk indicators,” said Dennis Moroney, research director for CEB TowerGroup. “There are techniques, tools and data sources available to combat merchant fraud proactively and efficiently. Automation of new merchant customer underwriting and monitoring of merchant financial behavior is conceptually very similar to the analysis used in the fraud and credit decisioning of consumers and can be effectively utilized by merchant acquirers to reduce their credit and fraud losses.”
Eric Lindeen, marketing director for Zoot Enterprises will be presenting “A Lifecycle Approach to Mitigating Fraud Risk” during the MAC conference on April 3, 2012 at 9:30am at the MGM Grand in Las Vegas, Nevada. Zoot executives will also be available to discuss underwriting and monitoring solutions in the exhibit area of the MAC Conference, April 3-5.
Bozeman, Mont.-based Zoot Enterprises, Inc. provides comprehensive credit decisioning, loan origination and credit risk management solutions to enable clients’ unique business objectives, leading to long-term relationships with top U.S. and international financial institutions. Zoot’s rapid, high-volume processing environment has the capacity to process billions of transactions per year. Visit http://www.zootweb.com or call 406.556.7555 for more information. Zoot thought leaders are now featured on zootweb.com/blog.