A periodic review is a standard risk management process to make sure we, as your merchant account provider, have an accurate assessment of your current and future processing needs. At your initial onboarding, we ask you to fully explain your business model, billing practices, and expected volumes. In an effort to stay involved in your growth, our Underwriting team conducts periodic reviews to ensure we have the most up to date information in our system.
Merchant account providers like Braintree are financially liable for all merchant losses. For example, a provider would be financially liable if a merchant sold an annual membership but then went out of business four months into providing the service. Our periodic reviews ensure that Braintree understands your business and won’t need to resort to abrupt actions that other merchant account providers often take—like holding funds, requiring a reserve, or terminating the processing relationship.
Reviews are typically conducted every 3-6 months, depending on variables such as industry risk, billing model, and increased processing volume. Our Accounts team will contact you with the specific information needed to help us fully understand the financial health of your business. Typically this includes recent financial statements and growth expectations for the coming year. Rest assured that we don’t publish these documents—we abide by our strict privacy policies while handling your financial information.
We ask that you provide the documents within 2 weeks to ensure that your account will not experience any delays during the the review. If you are unable to fulfill our request, please let us know as soon as possible. If significant time has passed since initiating the review and we haven’t heard from you, we may put a funding hold on your account until the review is complete.
If your business is unable to provide the requested documents, our Accounts team can work with you to determine if alternative documents provide enough information to complete the review.