Audience: Loan Servicer or Collector, Loan Servicing/Collections Managers, Administrator

Introduction

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.

• Website: loanpaymentpro.com
• Phone Number: (888)-391-5901

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

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.

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.

What's Next?

Once you've integrated LoanPaymentPro for payment processing, you're ready to start logging payments. Intro to Payments, Logging Payments and Intro to Secure Payments explore the payment process and how it works within LoanPro. If you need to brush up on how payments are processed in the software, reading our article Payment Processing will be your best bet. 

Since LoanPaymentPro also has additional features like funding and pre-transaction verification, you might be interested in reading Enhanced Funding and LoanPaymentPro Pre-Transaction Verification to learn more about these features.