LoanPaymentPro's Pre-Transaction Verification

LoanPaymentPro lets you process payments through both ACH and credit/debit cards. The pre-transaction verification is only available for debit card payments.


Instead of attempting a transaction only to have it fail, you can verify that a borrower's payment profile has sufficient funds through LoanPro's integration with LoanPaymentPro. (A quick distinction: LoanPro and LoanPaymentPro are two separate companies. It's like a Steven/Stefan situation.) When you set up a LoanPaymentPro bank card processor, you'll have the option to enable pre-transaction verification, which will double-check the borrower's payment profile to make sure it's actually able to process the payment. LoanPaymentPro charges for each transaction that uses this service, but it can help you save time and money by preventing failed payments.

This verification tool will also help lenders comply with the Consumer Financial Protection Bureau (CFPB) Small-Dollar Payments Rule. The payment provisions impose requirements regarding payment attempts — specifically, prohibiting subsequent payment attempts following a second consecutive failed payment transfer without a new authorization. The Rule also requires finance companies making covered loans to send three different types of payment notices to borrowers.

Setting Up a Processor

Your first step towards pre-transaction verification is to create a LoanPaymentPro processor. In the Secure Payments UI, navigate to Processors > Bank Account/ACH (USA) > API Integration, and scroll down to LoanPaymentPro.

From there, either click the blue plus icon to add a new processor, or the pencil icon to edit an existing one. This brings up a window to name the processor, enter your LoanPaymentPro transaction key, and toggle Pre Tx Verification.

Make sure the Type field is set to Credit Card. Change Pre Tx Verification to 'Yes', and then click 'Save'.

Processing Transactions

From this point, you're home free. Any transactions you run through this processor will send a pre-transaction verification before requesting the actual payment. Just process transactions like normal, with no extra headache.

If don't want all of your transactions to use this feature, we recommend setting up multiple processors and organizing them with merchant processor groups.

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