EveryPay helped the United Kingdom-based short-term loan provider to enhance their product and reduce fraud. The company had grown rapidly and we’re offering a flexible loan product. At that time their portfolio included 2 million consumers on their database. More than 500,000 loans already issued worth more than £75 million. Fast cash-flow, no fraud, and easy identification. The goal of the company was to make the service as seamless as possible for consumers. Whilst also being compliant with the UK Financial Conduct Authority.
- Cash-flow improvement
- Improve customer sign-up process and reduce customer service workload
- Reduce fraud rate
- Increase the performance of debt collection.
Fast facts of the company:
- CUSTOMER BASE: over 2m consumers in the database
- LOANS ISSUED: more than 500 000 loans
- LOANS ISSUED AMOUNT: more than £75 m
HQ: Manchester, UK
Four main challenges the company was facing:
- CASH-FLOW ISSUES
It took at least three days to receive settlements from their payment gateway. This tied up a lot of assets and create delays.
Experiencing fraudulent cases on a daily basis.
- CARD TYPE CHECK
The company was unable to detect whether a customer was using a debit or a credit card to make repayments. It is against the law to make a debt repayment with a Credit Card in the UK.
- INCREASED PERFORMANCE OF DEBT COLLECTION
By using EveryPay LinkPay, the company has been able to improve the performance of internal debt collection significantly.
What was the solution?
With EveryPay they are now able to instantly see whether a payment was successful. Receive all payments the next calendar day, every day of the year. If the collection was unsuccessful, then by having a card token, there is an option to initiate the payment again, either in a few hours or days, until the collection is successful. This improved cash-flow gives a major advantage in the financing industry.
The fraud was initially a major issue to tackle. For example, loan applicants using fake data, or applying for their loans from unsupported countries. By using EveryPay’s fraud module, the number of fraudulent cases dropped dramatically. As the lender was able to fine-tune the fraud rules according to their specific needs. Including geo-blocking, or only allowing specific card types, and also setting a capture delay on their payment. Edition to decreasing fraud, this has also enabled the company to save on credit data costs as fraudulent applications have been identified in an earlier state of the loan application.
Card type check
Card type check needed to be an integral part of the new system. Since in the UK it is illegal to pay your loan with a credit card. For this reason, when applying for a loan, customers need to enter their card details. Until EveryPay’s solution was implemented, the company had to wait until the whole application process was completed.
In order to understand whether the customer was using a credit card or debit card. This resulted in time wasted both for the customer and for the company. Once the client enters their card details, the EveryPay system will tell right away whether it’s a credit or debit card. This saves a lot of time, frustration and increases the number of successful loan applications.
Increased performance of debit collection
Increased performance of debt collection by using EveryPay’s unique product LinkPay. Instead of asking the customer to log in to an account and make a payment. Company can send a payment link via a text message or email where the customer can enter its card detail. This has improved the collection of overdue debts where automated collection attempts are not allowed by the regulator.
Additional key benefits:
- EveryPay´s Tokenisation: allows your customers to securely save a card and encourages repeat payments with ‘one-click checkout.
- EveryPay´s subscription Payments: allowing you to take payments at any interval you agree with your customers. A perfect product for any fees charged on a regular basis.
- Simple integration + world-class ongoing support: saves time and resources switching to EveryPay.
- EveryPay LinkPay is a useful tool for all types of businesses. Allowing you to accept online card payments without any need for IT development or even a website. You can simply post it to your customers via email, social media, or even a QR code.
EveryPay is PCI DSS level 1 certified: to protect you and your customers.
EveryPay is the fastest growing payment gateway in Northern Europe. Focusing on smart payment gateway solutions for companies of all sizes: from large multinationals to localised eCommerce merchants. Along with easy integration and excellent support. EveryPay helped to do an instant settlement. Competitive fees, subscriptions, link-based payments, functionality to support top-ups, digital wallets, card identification, and a flexible fraud detection engine.