Adding a Merchant with Multiple Beneficial Owners
When you have multiple Beneficial Owners with over 25% ownership, you need to list all of them. For Merchants determined to be high risk, you may need to list all Beneficial Owners with over 10% ownership.
The flow for adding a Merchant with multiple Beneficial Owners requires you to create multiple associated identities to represent the Beneficial Owners. You want to create the identity for the company with the owner that has the highest ownership. All other beneficial owners will be added as Associated Identities.
The associated identities represent the beneficial owners who are tied to the master Identity.
When you decide to underwrite the merchant, it’s very important to underwrite the principal/parent identity, not the associated identities. Associated Identities cannot be provisioned as a Merchant.
Let’s walk through an Example:
1. Navigate to the Identity that has Beneficial Owners and click on “Associated Identities”
In the Personal Info section, the main owner is listed with a 34% ownership of the company. There are two more beneficial owners to add, each having 33% ownership.
2. Add all Beneficial Owners as Associated Identities
Click the New Associated Identity button which will bring up the standard onboarding form you saw earlier.
Note: You can leave the Business Information blank as the parent identity already has this information.
3. Provision the Parent Identity
Before you head to the Processors tab, make sure you see all the Associated Identities to make sure you are on the right identity. Next, click on the Provision Merchant button and the merchant