Covers common questions merchants have about completing the Owner/Officer section of the Prospect Form
In this Video, we cover:
- What to do if there is no owner
- How to enter more than one owner/officer information
- How to avoid one common pend on the iCG Pre-Application
Video Transcript:
Hello, I’m Abigail and welcome to our third video on the iCG Pre-Application process. In this video and the next, I will be addressing common questions that we receive from merchants while filling out the Prospect Form.
Our video today will be focused on questions from the Owner/Officer Information section. I have gone ahead and completed the first section of this application, because as mentioned in my previous video, the merchant must fill in the required information for a section before they are permitted to continue.
A common question we get asked is how to enter in the business information for this section if there are no owners. Applications for financial institutions, government entities, and nonprofits can provide officer information in place of ownership details. For these organizations, the 51% ownership requirement is not in place. They can enter the % of ownership field as 0% and will still be able to continue with the application.
However, for businesses that have owners, it is important to include any individual or business with at least 25% ownership. Additionally, at least 51% of total ownership must be demonstrated on the application. For example, if you have three owners each with 20% ownership all three owners must be listed to be greater than the 51% minimum even though each one individually may have less than 25%.
Please note that when filling in the owner/officer information, the merchant must select the “Click to Submit Info” button to save the information provided. They can repeat this process to add as many owners or officers as needed and will be able to view them listed in the table below.
Before continuing to the next section, the merchant will be asked two questions, where they will be able to provide additional information if needed. I would like to emphasize the importance of answering this first question accurately as it is a common reason for why an application is pended by our Risk department. If there are any relevant situations within the past 10 years, the merchant should answer “Yes” and provide the date, a brief explanation, and its current status in order to reduce the risk of a pend on their application.
At this point, once they are ready, the merchant can continue to the next section on the Prospect Form.
Thank you for watching me cover some common questions on the Owner/Officer section, please continue to our next video to see me discuss some common questions on the ACH Processing section.