# Onboard Risk Check source: https://developer.mastercard.com/onboard-risk-check/product/orc/index.md ### Overview {#overview} #### Know your merchant / entity risk before you onboard them {#know-your-merchant--entity-risk-before-you-onboard-them} Onboard Risk Check (ORC) provides a comprehensive view of potential risk for any business, helping you make more informed onboarding decisions. Augment existing onboarding risk management tools with data that helps provide visibility into critical areas of risk: cyber vulnerabilities within a business's online environment, validation of business identity, and sanctions screening. ##### ORC helps support safer onboarding at scale: {#orc-helps-support-safer-onboarding-at-scale} **Proactive fraud reduction at onboarding** Across 200+ North American financial institutions, ORC informed decisions were associated with 4.3 bps lower fraud on average, with top quartile performers achieving 10X lower fraud rates. **Reduced exposure to merchant driven compromise** Across 130,000 merchants, financial institutions using ORC reported 50% fewer account data compromise incidents \& 4X less instances of digital skimming. **Efficient and accurate cyber health can support strong ROI** 99.1% Cyber Risk attribution accuracy ([RiskRecon](https://www.riskrecon.com/security-ratings-accuracy)) \& 147% Cyber 3-year ROI ([Gartner](https://blog.riskrecon.com/forrester-tei-study-analysts-are-150-more-productive-with-riskrecon))
Designed for participants across the payments ecosystem: · Acquirers · Marketplaces · Fintechs · Processors · Integrated Resellers *** ** * ** *** ### Three Dimensions of Risk {#three-dimensions-of-risk} Every Onboard Risk Check (ORC) inquiry evaluates a merchant or entity across three key risk dimensions: Cyber, Sanctions, and Business Identity Verification. ![Cyber Risk](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/cyber_risk.svg) ###### Capability 1: Cyber Risk {#capability-1-cyber-risk} Aggregated cyber risk rating of a merchant's online environment helps indicate the level of potential exposure to security risks. It is calculated by analyzing over 40 criteria across 9 security domains, producing an overall cyber risk rating along with individual domain-level ratings. ![Sanctions Screening](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/sanctions_screening.svg) ###### Capability 2: Sanctions Screening {#capability-2-sanctions-screening} Real-time screening against global sanctions lists and watchlists to help identify potentially prohibited entities before entering into a merchant relationship. ![Business Identity Verification](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/business_identity_verification.svg) ###### Capability 3: Business Identity Verification {#capability-3-business-identity-verification} Validate the merchant's identity, directors \& officers, industry codes, first-level of ownership details, and more. This helps confirm the business is who they claim to be and supports efforts to reduce fraud and misrepresentation risk at the point of onboarding. *** ** * ** *** ### Benefits {#benefits} A comprehensive solution to streamline merchant onboarding. ![Reduce decision making time](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/reduce_decision_making_time.svg) ###### Reduce decision making time {#reduce-decision-making-time} Returns data quickly to help reduce overall onboarding times. ![Reduce financial losses](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/reduce_financial_losses.svg) ###### Reduce financial losses {#reduce-financial-losses} Increases merchant risk visibility to promote better onboarding decisions. ![Multi-Channel Access](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/ease_of_use.svg) ###### Multi-Channel Access {#multi-channel-access} Offers multiple channels to perform an inquiry and view results. *** ** * ** *** ### Why use it {#why-use-it} ### 6 days is the average time it takes to onboard a merchant. Verisk Financial G2 - Why frictionless merchant onboarding is irresistible. Oct 2019 ### 20% of potential merchants are lost due to complicated onboarding processes. PYMNTS - Why onboarding drives merchants away. Sept 2018 ### $35 to $100 is the average cost of manual merchant onboarding. Verisk Financial G2 - Why frictionless merchant onboarding is irresistible. Oct 2019 *** ** * ** *** ### Use cases {#use-cases} #### Built to support your onboarding process {#built-to-support-your-onboarding-process} Whether you onboard a few merchants or thousands, ORC can be incorporated into your existing workflows to help assess merchant risk. ###### Use Case 1: Pre-Boarding Underwriting {#use-case-1-pre-boarding-underwriting} **Persona: Acquirer** Get a clear view of merchant risk before you sign. Instead of pulling data from multiple tools, you can review information in one place and make informed decisions from the start. ###### Use Case 2: Sub-Merchant Screening at Scale {#use-case-2-sub-merchant-screening-at-scale} **Persona: Marketplace / Fintech** Screen sub-merchants as they apply without slowing down your onboarding flow. Integrate via API and help automate risk checks, supporting your compliance team as they scale without necessarily increasing headcount. ###### Use Case 3: White-Label Risk Service {#use-case-3-white-label-risk-service} **Persona: Reseller** Offer merchant risk screening as part of your own solution. Easily embed ORC and help support a new revenue stream while helping your clients onboard businesses with greater confidence. *** ** * ** *** ### How it works {#how-it-works} ##### Option 1: Customer uses Onboard Risk Check (ORC) API {#option-1-customer-uses-onboard-risk-check-orc-api} The below flow diagram indicates the working mechanism of Onboard Risk Check (ORC). ![](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/ORCAPI_Flow_Diagram.png) 1. **Start an Inquiry** : Approved customers (like Acquirers or other partners) can ask about a potential merchant using the ORC system. They do this through an online API and can choose which risk assessment providers they want to use. 2. **Get a Reference Number** : ORC checks the request to make sure everything looks good. If it does, the customer gets a special reference number (called an Inquiry Reference Number) that they can use to track the inquiry. 3. **Send for Review** : ORC sends the inquiry to the selected risk providers to get their assessment. 4. **Compile the Report** : Once the providers send back their results, ORC puts everything together into a single risk report. 5. **View the Report** : Customers can use the Inquiry Reference Number to check back and view the final risk report. 6. **Extra Access for Acquirers** : Only Acquirers can also use the ORC web interface to view the results of inquiries they submitted through the API. ##### Option 2: Customer uses MATCH to initiate an inquiry {#option-2-customer-uses-match-to-initiate-an-inquiry} **MATCH** is short for "**M** ember **A** lert **T** o **C** ontrol **H** igh-risk merchants". It is a mandated program for acquirers. Please refer [Glossary](https://developer.mastercard.com/onboard-risk-check/documentation/glossary/) for in-depth details on MATCH. ![](https://static.developer.mastercard.com/content/onboard-risk-check/uploads/MATCHORCAPI_Flow_Diagram.png) 1. **Start the Inquiry** : The Acquirer (a customer) uses the MATCH system to check details about a merchant. This is like asking, "Tell me more about this business." 2. **Get an Inquiry Reference Number** : MATCH sends back the merchant details along with a special tracking number called an Inquiry Reference Number (IRN). Think of this as a receipt for your request. 3. **Send to ORC for Risk Check** : Using that IRN, the Acquirer then asks ORC (Onboard Risk Check) to perform a deeper risk assessment on the merchant. 4. **ORC Contacts Data Providers** : ORC sends the inquiry to different data providers who specialize in risk checks. These providers look up information about the merchant to assess potential risks. 5. **ORC Compiles the Report** : Once the data providers send back their findings, ORC combines everything into one complete risk report. 6. **Results Returned** : ORC sends the final risk assessment back to the Acquirer, based on the original IRN from MATCH. *** ** * ** *** ### Resources {#resources} Onboard Risk Check This API provides an interface to perform an Onboard Risk Check inquiry so that customers can gain visibility into additional risks a merchant may bring to a customer's portfolio prior to onboarding. *** ** * ** *** **Used By** Acquirers \& Non-Traditional Customers **Regions** Global **Supports** ![mastercard card](https://developer.mastercard.com/img/card_mastercard.svg) *** ** * ** ***