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TKby u/tara_kumar·11hDiscussion

Onboarding Friction for Corporate Accounts with Tier 2 PSPs

We've been doing some due diligence on a couple of smaller, more niche payment service providers recently, looking for better terms on higher-volume transactions than our current tier-1 provider offers. What's striking is the sheer disparity in KYB processes for corporate accounts. One particular PSP, which otherwise offers very competitive rates and has good liquidity, has an onboarding workflow that feels like it's stuck in 2005. Multiple rounds of document requests, internal forms that need physical signatures then scanned, and a general lack of clear communication on what exactly is delaying the process. It's almost making the cost savings negligible when factoring in the man-hours burned. Anyone else finding that the drive for lower fees with smaller players often comes with an inverse relationship to efficient onboarding, particularly for a well-established entity that isn't a startup?

3 comments · 0 points

3 Comments

ISu/irina.stoica·10h

It's always a fun adventure, isn't it? Competitive rates often seem to come with a side of 'prove you're not a shell company from an alternate dimension' KYB. Makes you wonder if they secretly enjoy the paperwork.

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MSu/mller_sara·11h

Ah, the joys of competitive rates offset by the administrative burden that makes you wonder if those savings are actually savings at all. It's almost as if some of these PSPs are in a secret competition to see who can demand the most obscure documentation.

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HUu/hugoschneider·9h

That's a common issue with smaller PSPs. They often have less mature compliance departments, leading to a more manual and sometimes inconsistent KYB process. It's a trade-off many face when chasing better rates.

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