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Loop Financial Uses PayTic Connect to Help Launch New Cross-Border Corporate Card Program

Background

Loop Financial is a neo-bank based in Toronto, offering a banking platform for growing Canadian businesses. Loop offers no-fx business credit cards, multi-currency bank accounts, free international payments, and capital products. Since 2020, Loop has helped Canadian e-commerce brands, online stores, start-ups, agencies, entrepreneurs, and more save thousands in banking fees with a meaningful banking partnership that supports growth. Kerwin Jorbina, Head of Engineering, sat down with PayTic to discuss the addition of the credit card program at Loop.

The Challenge

Setting up and launching a new corporate card program that manages multiple currencies can be a lot of work for a fintech. Also, once up and running, the administrative overhead to manage the day-to-day reconciliation, network reporting, fraud monitoring and chargebacks can be overwhelming.  That’s where a card issuer/sponsor and PayTic came in to help Loop.

“In negotiations with our card issuer/sponsor, we agreed to take on managing the chargeback process, while the sponsor manages everything else.” says Kerwin. “This actually worked out well, because it gives us the opportunity to manage the relationship with our cardholders, as a chargeback process can become adversarial.” However, most fintechs want to focus on their core business, and not on building a chargeback function from the ground-up (aka reinventing the wheel).

Finally, chargebacks can be costly to the fintech. If not implemented properly, chargeback processes can be fragmented and lack a lifecycle approach, which results in a poor cardholder experience and lapses in card renewals. “We did not only want to manage the chargeback process, but we also wanted our clients to be engaged and trust the process” says Kerwin.

“We view PayTic as a key enabler to growing our business. They are constantly innovating and releasing new value-add features. As we grow the card program and diversify, we will be sure to have PayTic there to help us manage the back-office program functions that we are responsible for.”

  • Kerwin Jorbina
    Head of Engineering
    Loop Financial

The Solution

Loop could have designed, built and tested their own chargeback process, but to do so would have meant embarking on a large, expensive project.  That is where Kerwin and team turned to PayTic Connect for help.

“Our issuer/sponsor looks after card program reconciliation and invoicing,” says Kerwin. “And we were able to get onboarded with the PayTic chargeback product within weeks. The ease of walking through a member dispute with a workflow that follows network requirements and didn’t require intensive training, has made claim handling significantly easier, quicker and has increased our claim win ratio”.

As for the process itself, the PayTic chargeback wizard automatically generates the chargeback codes as well as the appropriate supporting documents through the dynamic questionnaire and ensures the electronic signature of the cardholder. Once all the information is gathered, Loop payment administrators can submit claims directly to the network from the PayTic product and manage them all from one place. Finally, because the chargeback wizard asks the right questions based on transaction meta-data, the review time is optimized, so the process takes days compared to the standard 45-day cycle.

So, how has this project worked out? “We view PayTic as a key enabler to growing our business. They are constantly innovating and releasing new value-add features. As we grow the card program and diversify, we will be sure to have PayTic there to help us manage the back-office program functions that we are responsible for”.

Organization

Loop Financial

Location

Toronto, ON, Canada

Key Challenge

Add a corporate card program that aligns with issuer and network requirements while not reinventing the wheel to manage back-office chargeback functions. 

Key Benefit

Allowing a growing B2B fintech to focus on their core business by automating the chargeback process, resulting in a high level of client satisfaction.