Allied Wallet, a G2 client, uses Global Boarding to dig deep into its potential merchants’ histories to uncover hidden risks and make more informed boarding decisions. Due diligence during the boarding process is the first line of defense when it comes to protecting a company’s merchant portfolio from financial loss due to risky merchants. With the increasing demand for a quick turnaround time at boarding, the careful balancing act of thorough due diligence along with the need for speed at boarding is a rising challenge. G2 developed Global Boarding, a fast flexible due diligence solution precisely to solve this problem.
The Need for Faster, More In-Depth Due Diligence
Allied Wallet, a global provider of online credit card processing, multi-currency merchant services, and a PCI Level 1 secured payment gateway, sought a way to board new merchants faster and to better predict the risk potential merchants presented to their organization. Allied Wallet wanted the ability to dig deeper into its potential merchants’ history to uncover past violations of card network rules and to identify any connections with other risky merchants to better manage the overall risk of the company’s merchant portfolio. As a Fortune 500 company, Allied Wallet is growing at an incredibly fast pace with over 100 million users worldwide. G2 Web Services’ Global Boarding solution provides a more thorough and streamlined way for them to ensure that they’re working with only the finest merchants.
The Solution: G2 Global Boarding
Allied Wallet partnered with G2, a leading provider of merchant risk management solutions, to use their Global Boarding due diligence solution. Global Boarding is a flexible, customizable due diligence solution that uses the G2 Merchant Map®, an extensive database of merchant risk history, along with dozens of industry data sources to analyze and score merchant risk. After implementing this new solution, Allied Wallet has been able to submit prospective merchants to Global Boarding and receive a G2 Risk History Score in less than three minutes, enabling them to board merchants much faster than before. The G2 Risk History Score was developed by studying the behavior of hundreds of thousands of merchants, and predicts the likelihood of a prospective merchant introducing risk into a company’s portfolio. When a merchant needs deeper due diligence due to a high-risk MCC or other factors, Allied Wallet can take advantage of Global Boarding’s additional risk checks to dig further into the merchant’s history, including conducting a content review of the merchant’s website for compliance violations, an inspection of their business policies, a review of their background including whether they appeared on the OFAC list, along with a service provider analysis to determine if its service providers are secure and registered with the card networks. “Integrating the Global Boarding tool into our underwriting process reduced our time spent on due diligence by decreasing our manual processes,” said Andy Khawaja, CEO of Allied Wallet. “It provides us with consolidated ‘Know Your Customer’ analysis from websites that we used to have to research one at a time. In addition, it provides us with previous violations a merchant has received, which we would otherwise not know because that information cannot be found on public websites.”
The Result: Reduced Overall Merchant Risk
Because Global Boarding is very thorough and alerts them to potential risks, it has given Allied Wallet the confidence that they have a better understanding of who they are getting into business with and an increased comfort level. They also find it particularly helpful that they can customize the report to their specific needs, which puts more control in the hands of the underwriter. Since implementing G2 Global Boarding, Allied Wallet has improved its boarding process significantly. “The quick turnaround time of the G2 Risk History Score has been particularly helpful for us to keep our due diligence in-house and board merchants faster,” Andy Khawaja added. “We appreciate the flexibility of being able to do a quick review of a merchant’s risk history, or a more in-depth review for higher risk merchants. Using G2 Global Boarding has helped Allied Wallet to board more merchants faster, and to reduce our overall merchant risk, which is critically important to our organization.” Contact us to learn more about Global Boarding.