LoanPaymentPro is one of LoanPro’s integrated payment processors. (And yes, we're two separate companies. It's like a Geoff/Jeff situation.) LoanPaymentPro is a pretty versatile processor; not only can they handle payments from both bank accounts and bank cards, but they can also fund a loan through either payment method.

In this article, we'll explain how to set a new LoanPaymentPro processor up in LoanPro's Loan Management System (LMS). We'll also touch on how they do funding and pre-transaction verification, with links to full articles on those features.

Creating LoanPaymentPro Processors

Like all payment processors, LoanPaymentPro is subject to the regulations of the ODFI (Originating Depository Financial Institution). As such, LoanPaymentPro will need to evaluate your company through an underwriting process before an integration is possible. The underwriting process usually takes between two and four weeks, so we recommend getting an early start.

Once that underwriting is approved, LoanPaymentPro will give you a set of credentials that you can use to create processors within LMS.

ACH Integration

To set up a LoanPaymentPro integration to process ACH payments within LMS, navigate to Settings > Company > Merchant > Secure Payments and then select the 'Bank Account/ACH (USA) Processors' tab. Here, you can add, update, and remove processors from your account. To add a new ACH processor, click 'Add'.

From the 'Processor Type' drop-down, select LoanPaymentPro. Next, provide a name for the processor and input your LoanPaymentPro transaction key. Finally, you have the option to select this processor as the default ACH processor for your account and auto reversal. Setting auto reversal to "Yes" will automatically reverse transactions in LoanPro if they are reversed in LoanPaymentPro.

Click 'Save' to finalize your processor settings.

Bank Card Integration

To set up a LoanPaymentPro integration to process bank card payments within LMS, you will need to set up a LoanPaymentPro debit/credit card processor. To do this, follow the same navigation path as detailed above, but select the Debit/Credit Card tab. Like creating an ACH processor, click 'Add' to create a new bank card processor.

From the 'Processor Type' drop-down, select LoanPaymentPro. Next, provide a name for the processor and input your LoanPaymentPro transaction key. Bank card processors provide a few different settings, including the following:



Bypass Processing

If set to "Yes", payments processed with this processor will get logged in LoanPro, but won't get sent to LoanPaymentPro.


If set to "Yes", this processor will become your default credit and debit card processor.

Auto Reversal

If set to "Yes", transactions reversed within LoanPaymentPro will also be reversed within LMS.

When you're done, click 'Save' to finalize your processor settings. Now you're ready to process payments using LoanPaymentPro. Just follow the steps to log a payment and select LoanPaymentPro as your processor.

Funding Loans through LoanPaymentPro

LMS's integration with LoanPaymentPro lets you not only receive money from borrowers, but also send it to them through a funding transaction. This works on both ACH and bank card payment profiles.

The process is fairly simple, but it does require a little setup. First, you'll need to create LoanPaymentPro processor (as explained in the last section). Then, create a Merchant Processor Group that uses your processor for funding. For the individual loan you plan to fund, you'll also need to create a loan, add a customer, and add that customer's payment profile—either ACH or bank card.

From there, it follows our normal Enhanced Funding process. Just be sure to select the Merchant Processor Group with LoanPaymentPro as your processor.

Not all bank cards can receive funds. Before you try to fund a bank card, you may want to check that a debit card can receive funding, which can be done through an advanced card lookup.

Pre-Transaction Verification

Another LoanPaymentPro feature is their pre-transaction verification. This tool can quickly and automatically check that a payment profile has funds before actually trying to pull them, ensuring that borrower's have sufficient funds in their accounts. Your borrower's will appreciate that they don't have overdraft fees, and if the loan is subject to the CFPB Small-Dollar Rule, you can automatically comply with one of its key requirements.

Setting the tool up is fairly simple, and it's explained in our article LoanPaymentPro Pre-Transaction Verification.

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