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Braintree launches instant underwriting

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Re: Braintree launches instant underwriting

#21

Post by mamcx »

klynch wrote: post #19
jkaljundi wrote: post #15

Their sign up form seems to be only for the US, so is the instant underwriting news absolutely correct or is the instant thing for only one of the 200 countries in the world? At least just a few days ago the international forms and documentation they asked for to sign up was miles long.

@jkalkundi - Kristi from Braintree here. Currently, the instant underwriting process is only available to our US based merchants. We've made underwriting for merchants outside the US easier than many of the current international alternatives. But we’re still working hard to make sign-up instantaneous for merchants based outside the US and expect to be there soon. As you probably already know, international banks can…

Also, any plans for latin-america (I'm from Colombia). Paypal open here and then close, and I can't get out the money (except buying stuff). Now I'm with fastspring but wish to have options...

Re: Braintree launches instant underwriting

#22

Post by tzs »

I don't understand how instant underwriting works. I thought the the reason it normally takes a while to get set up to take credit cards is because your merchant account provider is liable to the credit card providers for chargebacks, even if they can no longer collect that money from you because you went under months before.

Who assumes the risk for chargebacks in the instant underwriting scenario? How does that party control their risk?

Re: Braintree launches instant underwriting

#23

Post by klynch »

tzs wrote: post #22

I don't understand how instant underwriting works. I thought the the reason it normally takes a while to get set up to take credit cards is because your merchant account provider is liable to the credit card providers for chargebacks, even if they can no longer collect that money from you because you went under months before. Who assumes the risk for chargebacks in the instant underwriting scenario? How does that par…

Kristi from Braintree here.

We wrote our own underwriting software that connects our online signup process with years of data and experience underwriting tech companies. That combination of better software, years of data and more experience with tech companies makes us way more efficient than traditional payment providers.

As for who assumes the risk: the merchant is responsible for chargebacks first. If the merchant fails to cover those chargebacks, the risk then typically sits with the payment provider. If the payment provider is not able to cover the risk, the bank then stands behind the payment provider.

Re: Braintree launches instant underwriting

#24

Post by klynch »

mamcx wrote: post #21
klynch wrote: post #19

Earlier quoted context omitted.

@jkalkundi - Kristi from Braintree here. Currently, the instant underwriting process is only available to our US based merchants. We've made underwriting for merchants outside the US easier than many of the current international alternatives. But we’re still working hard to make sign-up instantaneous for merchants based outside the US and expect to be there soon. As you probably already know, international banks can…

Also, any plans for latin-america (I'm from Colombia). Paypal open here and then close, and I can't get out the money (except buying stuff). Now I'm with fastspring but wish to have options...

We're working on it, but no timeline. You can sign up to be notified when we become available in Latin America here: https://www.braintreepayments.com/tour/international

Re: Braintree launches instant underwriting

#26

Post by klynch »

zakshay wrote: post #13
zakshay wrote: post #9

I'm not sure if this is comparable to Stripe's signup process. I just tried signing up from: https://apply.braintreegateway.com/ At the end of it, my application for queued to be manually reviewed (~24 hrs) by an underwriter. Am I missing something here ?

UPDATE: My application was approved within 30 minutes.

That's great! Not sure if you saw this answer to @davidandgoliath where I elaborate a little more on our process:

Most applicants will be approved instantly. There are some circumstances, such as the specifics of your business model, that may require a brief manual review. At most this will take 1 business day, but many reviews will be much quicker - as fast as 20 or 30 minutes.

The difference between Braintree and others is that when we say yes, we mean it. That means your business is good to go from day one and you won’t have to worry about paypal-like shut downs.

Kristi, Braintree

Re: Braintree launches instant underwriting

#27

Post by BallinBige »

klynch wrote: post #23
tzs wrote: post #22

I don't understand how instant underwriting works. I thought the the reason it normally takes a while to get set up to take credit cards is because your merchant account provider is liable to the credit card providers for chargebacks, even if they can no longer collect that money from you because you went under months before. Who assumes the risk for chargebacks in the instant underwriting scenario? How does that par…

Kristi from Braintree here. We wrote our own underwriting software that connects our online signup process with years of data and experience underwriting tech companies. That combination of better software, years of data and more experience with tech companies makes us way more efficient than traditional payment providers. As for who assumes the risk: the merchant is responsible for chargebacks first. If the merchant…

pretty sure you are just an aggregator. Visa & MC are making this more 'feasible'

Re: Braintree launches instant underwriting

#28

Post by klynch »

BallinBige wrote: post #27
klynch wrote: post #23

Earlier quoted context omitted.

Kristi from Braintree here. We wrote our own underwriting software that connects our online signup process with years of data and experience underwriting tech companies. That combination of better software, years of data and more experience with tech companies makes us way more efficient than traditional payment providers. As for who assumes the risk: the merchant is responsible for chargebacks first. If the merchant…

pretty sure you are just an aggregator. Visa & MC are making this more 'feasible'

Kristi from Braintree again.

All of our merchants get their own merchant account during our onboarding process.

Admittedly, it's a complex process behind the scenes. We know that a lot of people are interested in how we do this, and we want to be completely transparent about our business practices. We plan on putting out a blog post explaining it all in detail in the coming weeks.

You can subscribe to our RSS feed at http://feeds.feedburner.com/braintree for updates.

Re: Braintree launches instant underwriting

#29

Post by tisme »

klynch wrote: post #20
jim-greer wrote: post #18

"A recent acquisition of digital wallet company Venmo gave it another key arrow in the quiver: The promise to extend one-click payments across its entire portfolio. In other words if you’ve ever purchased an Uber cab– or anything else on a Braintree powered site– you can now make a quick one click purchase on any of its other sites." I don't see any mention of this sharing of one-click payment info on Braintree's sit…

Yes, we do have a universal checkout product in the works with the Venmo team. We’ll provide more details as we get further with the product but expect to see more from us on this soon, and the Pando article captures the essence of it. We want to take the seamless checkout experience that we’ve enabled for companies like Uber, HotelTonight, Fab and thousands of others and make it available across every merchant that…

One step away from a braintree wallet!

Re: Braintree launches instant underwriting

#30

Post by tzs »

klynch wrote: post #28
BallinBige wrote: post #27

Earlier quoted context omitted.

pretty sure you are just an aggregator. Visa & MC are making this more 'feasible'

Kristi from Braintree again. All of our merchants get their own merchant account during our onboarding process. Admittedly, it's a complex process behind the scenes. We know that a lot of people are interested in how we do this, and we want to be completely transparent about our business practices. We plan on putting out a blog post explaining it all in detail in the coming weeks. You can subscribe to our RSS feed at…

I've tried on occasion to figure out all the players involved in processing a payment, and their relationships and responsibilities. It is complicated because (1) so many companies offer multiple services (gateway, merchant account, etc) and their documentation blurs the distinction, and (2) some companies use different names for the same thing.

Here was my best attempt: http://news.ycombinator.com/item?id=2445866

If your blog post could cover all the components I tried to cover there--but without the errors I probably made and with the gaps filled, I and many others would be grateful and ecstatic.

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