Split Funding (SF) – Standard Operating Procedure (SOP)

Purpose

This SOP standardizes how Split Funding is enabled and managed for merchants under the CBCAL BIN 7524. It ensures consistency, compliance, and proper coordination between ISO/Sales reps, Boarding Associates, Underwriting, Back Office Support, and other stakeholders.

Scope

• All internal teams responsible for onboarding, ticketing, pricing updates, and funding setup.
• ISO/Sales reps requesting Split Funding setup via ticket.
• Merchants must be under BIN CBCAL 7524 to be eligible for Split Funding.

Eligibility & Prerequisites

• Processor & BIN: Merchant must be onboarded on TSYS with BIN CBCAL 7524.
• Authorization Agreement: The Split Funding Authorization Form must be signed and attached to the merchant’s CRM Documents section.
• Required Documentation: For each split account, attach a voided check or an official bank letter. Temporary or starter checks are not accepted. Bank letters must be dated within the last 60 days and signed by a bank representative.
• Number of Accounts: Up to four (4) additional checking accounts plus primary account allowed.
• Split Percentages / Fixed Amounts: Enter either all percentages or all fixed amounts; total does not need to equal 100%; remainder defaults to primary account.
• Implementation Time: 1–2 business days for setup after submission.
• Monthly Fee: Recurring fee per MID as listed in the executed MPA and Split Funding Authorization Form; full amount charged in the enrollment month.
• Funding Restrictions: Only available on deposits made from Merchant Industry, LLC.
• Ticket Submission: For existing merchants, submit a Split Funding ticket via RFC = Bank Changes, Actual Problem = Split Funding, Group = NY BO.

Roles & Responsibilities

Process Overview

1. New Merchant Flow (During Boarding)

1. Boarding Associate:
   • Verifies required Split Funding documents (Voided Check, Bank Letter, Authorization Form) are uploaded in CRM.
   • If documentation is missing or incomplete:
     • Adds note to merchant account.
     • Sends email to ISO/Sales Rep:

       If there are issues with Split Funding during underwriting (e.g., missing documentation), funding will default to the merchant’s primary account to avoid delaying account approval. Once the missing or corrected documents are received, please submit a ticket to Back Office (BO):
       - RFC: Bank Changes
       - Actual Problem: Split Funding
       - Group: NY BO

   • Checks the Split Funding Authorization Form and ensures percentages/amounts are correctly entered.
   • Verifies MPA & executed Authorization Form; confirms monthly fee matches documents.
2. Underwriting: Confirms documentation if present; approves merchant account regardless of Split Funding status.
3. Ticket submission (if documents complete):
   • RFC = Bank Changes
   • Actual Problem = Split Funding
   • Group = NY BO
4. Back Office (BO):
   • Enable/configure Split Funding in Express.
   • Configure additional accounts with correct percentages or fixed amounts; confirm totals.
   • Verify GIACT completion in CRM before finalizing setup.
   • Update pricing in CRM.

2. Existing Merchant Flow (ISO/Sales Rep Ticket Submission)

1. Verify merchant eligibility (processor & BIN = CBCAL 7524).
2. Send Split Funding Authorization Form via EDOCUSIGN; confirm it appears in Documents.
3. Complete ticket fields:
   • RFC = Bank Changes
   • Actual Problem = Split Funding
   • Group = NY BO
4. Submit ticket.

3. Internal Split Funding Ticket Workflow (After ISO/Sales Rep Submission)

Internal teams follow this procedure:

Ticket Review & Verification:

• Verify merchant eligibility (CBCAL BIN 7524).
• Confirm required Split Funding documents are uploaded.
• If incomplete, add note to account and notify ISO/Sales Rep.

Back Office Setup:

• Enable Split Funding in Express for accounts with complete documentation.
• Configure additional accounts with correct percentages/fixed amounts; confirm totals.
• Verify GIACT completion in CRM before finalizing setup.
• Back Office updates pricing in CRM.

4. Cancellation Process

For cancellation requests submitted by ISO/Sales reps:

1. Open cancellation ticket and verify the merchant account is active and Split Funding-enabled.
2. Back Office (BO) disables Split Funding and removes the associated fee.
3. Verify CRM reflects that Split Funding has been disabled and the fee removed.
4. Log all actions in the audit records (e.g., SharePoint Activity Log).
5. Escalate any discrepancies immediately.

Quality Control & Documentation

• CRM must reflect correct Split Funding setup and percentages.

• Fee must match executed MPA and Split Funding Authorization Form.

• Action must be logged in SharePoint Split Funding Activity Log with: DBA Name, MID, Date fee verified, Team member performing the update.

• Escalate any discrepancies immediately.

Review & Audit

• Internal teams must periodically audit Split Funding records for compliance.

• Escalate tickets not processed within SLA to Back Office management.

• Escalate pricing or configuration issues to Back Office management.

Document Control

• Review annually or upon policy changes.