In this week’s podcast, we talk to Marcus Smith, senior vice president of Risk Management for iPayment, a provider of payment solutions and processing services, about the tools used in underwriting submerchants.

Smith points out that while underwriting tools themselves are relatively simple, interpreting the results effectively requires some training.

He also reminds payment facilitators that just because something is effective today, that doesn’t mean it will stay effective.

“You should always, always look to recalibrate [the models you create] and make sure they are as effective as they once were,” Smith said.

To aid in that recalibration, Smith suggests conducting post-mortem reviews. Payment facilitators should ask themselves, “What mistakes did we make? How can we eliminate those and how can we replicate those things that do work?” he said.

Smith also emphasized the importance of collaborating and sharing information with peers through forums and industry associations, and staying up to date on what’s happening in the industry by reading payment periodicals, as ways to keep an underwriting program current.

Listen to Smith’s thoughts on the effective use of underwriting tools in this week’s podcast.