Merchant Processing Examination Tools
Portfolio Profile Worksheet
| Prior Year-End | Current Year-to-Date | |
| Sales Volume | ||
| Number of Transactions | ||
| Number of Merchants/Outlets | ||
| Average Ticket Size | ||
| Number and Dollar Reserves | ||
| Major Third Parties and Services Provided | ||
| Top Three Concentrations by Geographic Distribution | ||
| Top Three Concentrations by Industry | ||
| Top Three Concentrations by Volume | ||
| Charge-back Percentage of Sales | ||
| Charge-back Loss Volume | ||
| Fraud Loss Volume | ||
| Operational Loss Volume | ||
| Niche Market | ||
| Net Income/Contribution | ||
| Percent Electronic vs. Paper | ||
The portfolio profile worksheet can be used to summarize the profile of merchant portfolio at each examination and track changes in the profile from one examination to the next.
Income and Expenses (Sample Only)
| Volumes (000's) | Expenses |
| Total Sales Volume | External Data Processing |
| Total Transactions | Internal Data Processing |
| Average Ticket | Research and Development |
| Terminal expense/depreciation | |
| Income | Personnel |
| Gross Merchant Discount | Telephone Expense |
| Interchange (-) | Occupancy Expense |
| Assessments (-) | Travel & Entertainment |
| Net Merchant Discount | Supplies |
| Interest Income | Professional Fees |
| Transaction Fees | Fraud and chargeback losses |
| Terminal Fees | Miscellaneous Expenses |
| Miscellaneous Fees | |
| Total Income | Total Direct Expenses |
| Total Income Per Transaction | Total Allocated Expenses |
| Return on Total Income | |
| Return on Total Expense | Total Expenses |
| Direct Expenses Per Transaction | Net Contribution Before Tax |
| Total Expenses Per Transaction (Unit Cost) |
This sample list of income and expenses associated with a merchant processing operation can be used in evaluating the bank's profit analysis of the merchant processing activity.
Merchant File Review Worksheet
| Merchant Name | ||||
| Merchant Application | ||||
| - Signatures | ||||
| - Business Type | ||||
| - Description of Product and Services | ||||
| - Average Ticket Size | ||||
| - Volume Information | ||||
| - Social Sec. #/Tax ID | ||||
| - Trade and Bank References | ||||
| - Processor | ||||
| - Time in Business | ||||
| - Proper Approval | ||||
| Site Inspection | ||||
| - w/Photo | ||||
| - Inspected By | ||||
| Financial Information | ||||
| Credit Bureau Report | ||||
| Evidence of Previous Merchant Activity | ||||
| Check MATCH | ||||
| Purchase/Lease Equipment | ||||
| Discount Rate | ||||
| % Swiped Transactions | ||||