LoanPaymentPro is one of LoanPro’s integrated payment processors. (And yes, we're two separate companies. It's like a Geoff/Jeff situation.) LoanPaymentPro handles payments and funding transactions through bank cards.

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.

Setup

You can setup a LoanPaymentPro processor in both the LMS and Secure Payments. No matter where you set it up, they will link to each other. 
 

From Secure Payments

To set up a LoanPaymentPro processor in Secure Payments, navigate to Processors > Bank Account/ACH (USA) > API Integration > LoanPaymentPro. 

You will see the following fields:

Field	Description
Name	This name should distinguish this processor from others you might create.
Transaction Key	Your LoanPaymentPro Transaction Key that you'll receive from LoanPaymentPro after signing up.
Type	You choose between having this LoanPaymentPro processor process ACH or Credit Card transactions.
Pre Tx Verification	This setting refers to LoanPaymentPro's Pre-Transaction Verification tool. If set to “Yes” this tool will automatically check the borrower's payment profile for available funds before pulling them.

 

Once you've finished completing all of the fields, click the ‘Save’ button at the top right to finish.

 

 

From LMS

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, navigate to Settings > Company > Secure Payments > Debit/Credit Card.

Click the ‘Add Processor’ button at the top right and choose LoanPaymentPro from the 'Processor Type' dropdown menu.

 You will see the following fields: 

Field	Description
Processor Name	This name should distinguish this processor from others you might create.
Transaction Key	Your LoanPaymentPro Transaction Key that you'll receive from LoanPaymentPro after signing up.

 

Below these fields are a few different settings for bank card processing:

Field	Description
Default	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.
Pre Tx Verification	This setting refers to LoanPaymentPro's Pre-Transaction Verification tool. If set to “Yes” this tool will automatically check the borrower's payment profile for available funds before pulling them.

 

When you're done, click 'Save' to finalize your processor settings. 

 

 

Once you've got your processor set up in LMS, you'll be able to select that processor when logging ACH payments. Our logging payments article gives you the step by step instructions.  

Since LoanPaymentPro also has additional features like funding and pre-transaction verification, continue reading to learn more about these features.

Enhanced Funding loans through LoanPaymentPro

The LMS integration with LoanPaymentPro lets you not only receive money from borrowers, but also send it to them through a funding transaction. This works on 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 bank card payment profile.

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 borrowers 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—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.

LoanPaymentPro charges for each transaction that uses this service, but it can help you save time and money by preventing failed payments.

Setup

The controls for pre-transaction verification are set on each LoanPaymentPro processor, so your first step is just to create a processor. (For a more detailed walkthrough, scroll up.) In Secure Payment, navigate to Processors > Bank Account/ACH (USA) > LoanPaymentPro, and then either click the  'Add Processor' button or the edit icon next to an existing processor.

In your settings, you will have the option of turning on auto reversals, which automatically reverse transactions in LMS when a charge fails in Secure Payments. To use the pre-transaction tool, select 'Yes' in the 'Pre TX Verification' field. This allows LoanPaymentPro to go through the process of validating a borrower's bank account on every transaction before pulling funds from a borrower.

And that's all there is to it.

When you log a bank card payment using a processor with this setting turned on, LoanPaymentPro will do a pre-transaction verification before trying to actually pull any money. If there are insufficient funds, LoanPaymentPro will send a failed response back to Secure Payments.