This document is for Company Administrators ONLY and includes information on how to make changes to an existing scorecard, as well as build new scorecards.

The ScanX solution is designed as a configurable risk automation solution that can either be paired with native front end for data collection or receive the merchant data through an API connection. The following documentation is a step-by-step guide on how you can configure new or tweak existing risk models within minutes to be able to take advantage of optimization and exploit new opportunities for your business.

Tools such as the library of pre configured scoring rules and integrations, adjusting weighting for those, enabling auto-decision thresholds and underwriter recommendations are explained in detail to provide you with the insight you need to take full control of intelligent automated underwriting that accelerates time-to-revenue for any new business.

Scorecard Configuration

Video Link (password = aex)

This section outlines the tools available to a user with the Company Administrator role in Agreement Express. After reading this section, you will be able to create and customize your AEx Risk Scorecard.

Company Administrators are able to configure all of the Scorecard rules, weighting, auto-decision and recommendation thresholds, plus more. This section walks you through the end-to-end process of creating a Scorecard, configuring your scoring rules, applying weighting, and customizing your rule settings.

2.1. Scorecard Creation

To create a Scorecard template, you must have the role of Company Administrator. You can access the Administrator section by clicking on the Options Menu in the top-right corner of your Workspace Dashboard. From here, you can select the Templates Tab on the left menu and then use the Action Button in the bottom-right corner of your screen to select Scorecard. If you are updating an existing Scorecard, you can select it from the templates list.

2.1.2. Scoring Pages

On the right-side <reference image bubble #) of the Scorecard Builder, you can manage your Scorecard Pages. This includes the ability to rename, add, or delete pages. You can click on the page name to adjust them to your preferences. Clicking the Pencil Icon will take you to the Scorecard Page Configuration Screen, where you can manage your scoring rule configuration and scoring model.

2.1.3. Adding Fields

In the Scorecard Builder, you can add custom fields to the Overall Score, Merchant Details, and Scoring Page(s). To do this, select a field type (Text, or Dropdown) from the left-menu. After selecting a field type, you will be able to select a region on the page to add the field to (see the green section in the image).

2.2. Risk Rule Configuration & Automation Tools

After selecting the Page Configuration option in the top toolbar , you can take the following actions:

Adjust Page Weights
Update Scoring Rule Weights
Add or Remove Scoring Rules
Re-order Scoring Rules
Edit Scoring Rule Configuration Settings (Thresholds, Lookup Tables)
Manage Your Scoring Model (Auto-Approve, Cutoff, Auto-Decline)
Update Reason Codes

2.2.1. Adjusting Page Weights

In the Scoring Page Configuration interface, you are able to update the weights for your scoring pages.

All of your Scoring Pages should add up to a total weight of either 100 or 0 (Risk Flag-Only Scorecard). Individual Scoring Pages can be weighted anywhere from 0-100, as shown in the image above. The Overall and Merchant Details pages cannot be weighted because they are informational pages for the Underwriter, and do not contain scoring rules.

2.2.2. Update Scoring Rule Weights

In the Scoring Page Configuration interface, you are able to update the weights for your scoring rules.

All of your Scoring Rules within a page must add up to a total weight of either 100 or 0 (Risk Flag-Only Page). Individual Scoring Rules can be weighted anywhere from 0-100, as shown in the image above. If you configure a Scoring Rule to be weighted 0, then the rule will act as a Risk-Flag Only rule, and will not contribute to the overall score.

2.2.3. Adding and Removing Scoring Rules

To add Scoring Rules to your pages, you can use the Scoring Rule Insert Bar. Within the Page Configuration interface, you can hover your mouse cursor over any of your scoring pages and the Scoring Rule Insert Bar will appear.

2.2.4. Scoring Rule Library and Entity Selection

After using the Scoring Rule Insert Bar to place a scoring rule, you will see the Scoring Rule Library appear. The Scoring Rule Library allows you to select from a system list of scoring rules that you can add to your template.

After selecting the scoring rules you would like to add, you can use the ‘NEXT’ button to begin selecting Entity Types for your rules. The following entity types are supported by the Scorecard:

Owner (up to 4)
Control Person (1)
Business (1)
Banking (2)

2.2.5. Reordering Scoring Rules

In the Page Configuration interface, you can reorder scoring rules on your template. This allows you to display the Scoring Rules in the order your Underwriting Analysts prefer. To re-order your rules, simply click on the scoring rule reorder icon and then drag the rule to your preferred location. You can also use the feature to move scoring rules to other scoring pages.

2.2.6. Editing Scoring Rule Configuration Settings

Another useful tool in the Page Configuration interface is the ability to configure the settings of your scoring rules. To adjust the configuration of a scoring rule, select the rule in the Page Configuration interface. You will see the rule highlighted in grey, and the properties panel will display the configuration options.

There are two different kinds of configuration settings depending on the type of rule you have selected.

2.2.6.1. Threshold Rule Configuration

Some scoring rules leverage threshold-based configuration settings. These are ‘Flag-Only’ scoring rules, that are not weighted. They are used to indicate risk to your analysts and prevent auto-decisions (review flag), recommend decline (decline flag), or auto-decline (prohibited flag). In this example for the ‘Average Ticket Amount’ value, you can see that the review flag will be triggered if the value is greater than $2500. Note, this is currency agnostic, and will work with any currency type your company application data leverages.

2.2.6.2. Lookup Table Rule Configuration

Most scoring rules use Lookup Table configurations. These can be viewed in the Scorecard Builder Interface, but should be downloaded and updated in .csv format when making changes.
Page Configuration-->Click on Rule-->Click on 3 Dot Menu--> View, Download or Upload CSV/Lookup Table

Scoring Rules

You can then upload the table again to replace the existing settings for that rule. This is also how you can configure customer Underwriter Recommendations for certain results and additional AEX Key Word Searches.
Sample Extended Lookup Table Below:

2.2.7. Negative File

The Negative Files integration uses the customer application Business and Owner field to identify if the application data is found on a AEX hosted blacklist file. In addition, this rule includes a ‘negative file’. When Scorecards are declined, AEX will automatically save some Owner and Business fields to the blacklist for future checks.

The defaulted Negative List fields are: Website, Business Legal Name, Business DBA, Business Tax ID, Owner Tax ID, and Email. See Negative File Template here.

The client will need to provide values for the fields that should be monitored and that will trigger the auto-decline option. As a client, these values can be submitted to support for updating.

2.2.8. AEX Keywords List

The AEX Keyword Search identifies restricted and prohibited words in the customer’s application data. A lookup table is used to calculate the score and flags.

The Lookup Table labelled “Keywords” is accessible after selecting the AEX Keyword Search integration in the ScanX builder. The options presented allow the user to view the existing list of lookup and see what the defaulted keywords are. If any changes to the list need to be made, the user can then download the lookup, update the list with new “Keywords” and their property of either being restricted or prohibited - this is done by setting the value to 1 or 0.

2.3. Scorecard Automated Decisions & System Recommendations

In the right side panel of the Page Configuration Screen, you are able to adjust your risk scoring model.

AEx always recommends that you do not enable automated decisions until you have analyzed 90+ days of real production data and your compliance and risk management and other key stakeholders have signed off on the change.

2.3.1. Risk Model Tools

The following controls allow you to control automated decision settings and system recommendations for your risk analyst(s).

2.3.1.1. Auto-Approve Threshold

Any scorecard with an overall score over the Auto-Approve Threshold will be approved without manual review required. If there are Risk Flags triggered by any rules, the scorecard will not be auto-approved.

2.3.1.2. Cutoff Line

The determines if a scorecard has a system recommendation of Recommend Approve or Recommend Decline. Any Scorecard with an overall score that is greater than the Cutoff will be Recommend Approve (unless it is auto-approved). Any Scorecard with an overall score that is lesser than the Cutoff will be Recommended Decline (unless it is auto-declined).

2.3.1.3. Auto-Decline Threshold

Any scorecard with an overall score under the Auto-Decline Threshold will be declined without manual review required. If there are review flags triggered, the Scorecard will be placed in the manual review queue, regardless of the Auto-Decline Threshold. If there is a Prohibited Flag active on the Scorecard, it will always Auto-Decline without requiring manual review.

2.3.2. Manual Risk Scoring Model

2.3.2.1. Manual Risk Model Explanation

Auto-Approval (100) - Auto-Approve is not enabled. 100 is the maximum possible Risk Score.
Recommend Approve (50-100) - If no Decline or Prohibited Flags are active, Scorecards with an Overall Score from 50-100 will be in Recommend Approve status
Recommend Decline (0-50) - If the Score is between 0-50 and no Prohibited Flag is triggered the Scorecard Status will be Recommend Decline. All Scorecards with a score between 50-100 with an active Decline Flag will also be Recommend Decline.
Auto-Decline (0) - Auto-Decline is not enabled for the Overall Score. However, if you have enabled the <Prohibited Flag> Type, and it is triggered by a risk rule, then the Application will be Auto-Declined. The use of prohibited flags is optional and can be configured for specific industries, processing volumes, poor credit scores, and more.

2.3.3. Automated-Decision Risk Scoring Model

2.3.3.2. Automated-Decision Risk Model Explanation

Auto-Approval (75) - Any Scorecards with a score over 75 that do not have any risk flags triggered will be Approved without Underwriter Manual Review
Recommend Approve (50-75) - If no Decline or Prohibited Flags are active, Scorecards with an Overall Score from 50-75 will be in Recommend Approve status
Recommend Decline (25-50) - If the Score is between 25-50 and no Prohibited Flag is triggered the Scorecard Status will be Recommend Decline. All Scorecards with a score between 50-100 with an active Decline Flag will also be Recommend Decline.
Auto-Decline (0-25) - All Scorecards with an Overall Score from 0-25 will be Auto-Declined. Also, any scorecards with an active Prohibited Flag will be Auto-Declined. No Manual Underwriter Review will be required

2.3.4. Updating Your Risk Reason Codes

In the Page Configuration screen, you are able to manage the Reason Codes which will be available for your Risk Analyst to select from. The Scorecard supports the following Reason Code categories and default options:

2.3.4.1. Decline Reason Codes

Fraudulent
High Risk Business Model
Insufficient Credit
Other

2.3.4.2. Pending Reason Codes

Missing Information
Missing Documents
Other

2.3.4.3. Cancelled Reason Codes

Duplicate Application
Incomplete Application
Already have a merchant account
No response to pending request
Other

You also have the ability to remove or add new reason codes to any of these groups.

2.4. Scorecard Risk Flags

Scorecard Risk Flags can be configured for most scoring rules by editing the Rule Thresholds or Lookup Tables.

2.4.1. Review Flag

An Active Review Flag prevents automated decisions being made. Review Flags also highlight specific rule rules for your analyst to closely review. For example, if there is a possible OFAC Hit, you could trigger the review flag to ensure that an enhanced due diligence manual review takes place.

2.4.2. Decline Flag

An Active Decline Flag will prevent the Scorecard from making an Auto-Approve decision, regardless of how high the overall score is. Further, the Decline Flag will always force the System Recommendation to be Recommend Decline for your risk analyst during manual review.

2.4.3. Prohibited Flag

An Active Prohibited Flag will force the Scorecard to Auto-Decline without any manual review. The Prohibited Flag is not enabled in the default configuration for any of the ScanX Scoring Rules, but you can enable it for specific rules. Aex recommends that your Head of Risk Underwriting or Compliance approves any decision to enable auto-decisioning, including the Prohibited Flag type.

2.5. Credentials Manager

After you have configured a Risk Scorecard, use the Credential Manager to input credentials for your third-party integration services. This list of credentials is dynamically updated based on the rules you have configured on your current Scorecard template.

2.6. Scorecard Models (Blueprints)

Scorecard Models can be accessed from the top toolbar . This allows you to replace your current Scorecard with a pre-configured model. When creating a new Scorecard, you will always be prompted with the option to start with a Blank Scorecard model, or select another Model as a starting point.

2.7. Saving Scorecards

When you are building your scorecard, we recommend that you save your work frequently. If you do not save, any changes will be lost when you close the page or your session expires. You can save your Scorecard at any time by clicking the Save icon in the top toolbar.

Further, you can access the ‘Save As’ functionality which will make a copy of your current Scorecard template with a new name. This allows you to quickly create multiple scorecards with small variations in the scoring rule settings, weighting, rules, etc.

2.8. Scorecard Live Mode

Once you have created a Scorecard and you are ready to use it for production data, you should mark your Scorecard as ‘Live’. This is done using the three-dot menu in the top toolbar. A Live Scorecard prevents making changes to your scorecard template that is currently being used for ‘in flight’ transactions.

If your Scorecard is in Live Mode, you cannot make changes to the Scoring Rules (Cannot Add or Remove), and also locks the Data Entities supported (ex. The number of owners on your template). You are still able to adjust lookup tables, credentials, thresholds, and add custom fields to Live Mode Scorecards.

If you attempt a restricted action on a Live Scorecard, the system will check to see if there are any active workflows that are linked to the Scorecard template you are editing. If there are active workflows, you will be prompted to ‘Save As’ to create a copy when making restricted changes.

2.9. Configuring Multiple Scorecard Models

You can configure multiple scorecards to support different business verticals or sales channels. To do this, AEx recommends configuring your standard risk scorecard model, and then use the Save As feature to make a copy and then adjust it to the needs of your other business. For example, you may want to increase the weight of the Credit Score for one partner vs. another partner channel. Another possible use case is the ability to support different combinations of scoring rules and services based on business type.

Use Cases for Making Updates:

3.0. Use Case #1 - Adjusting the Cutoff Threshold

Company Scorecard Reports

After using the Scorecard for 90 days, your team reviews the Scorecard reporting data available in Agreement Express.

Applications by Risk Score Report

In the Applications by Risk Score report, we can see that a significant number of our Scorecards (90) had an overall score between 41 and 60.

Applications by Decision

In the Applications by Decision report, we can see that 41.2% of our scorecards over the last 90 days were Manually Declined by our Risk Analysts.

Scoring Model Adjustment

In this use case, your executive team is looking for you to approve more applications. To adapt the Scorecard to this request, we can lower our Cutoff value from 50 (anything over 50 = Recommend Approve), to 40. After this adjustment, all of the 90 Scorecards with a score ranging from 41-60 would have been recommended for approval. Your risk team would still decline applications if there were critical risk flags active, but the system would encourage more approvals as a result of the change.

3.1. Use Case #2 - Increase Your Credit Score Weighting

4.2.1. Company Scorecard Reports

After using the Scorecard for 90 days, your team reviews the Scorecard reporting data available in Agreement Express. A request has come down from your head of risk & compliance to ensure that credit score is the most important factor when approving a risk scorecard.

Adjusting Credit Score Weighting

Before

After

4.1.2.2. Adjustment Analysis

By increasing the Credit Risk page weight from 34% to 70%, we have adjusted our Risk Scorecard model to be aligned with the requested risk guidelines and policy.

4. Postback

If there is a need for an agreement‘s data and/or documents to be posted back to a specific location, a postback can be configured based on a URL from the company. When this function is enabled, every time an agreement is completed, the data from the transaction/scorecard is posted as a parameterized post with all form data delivered in a field called inputFormData as a set of key value pairs.

4.1. Postback Types

There are two different Postback options that AEX offers. The first option is a Standard Postback which can be formatted as either an XML or JSON and only requires an endpoint URL to be directed to. The second option is the SalesForce Postback which requires an account with permissions to read/write objects used in the Postback, username, password, security token, and URL (if login is through portal rather than API).

Note: Standard Postback can be auto-updated while the SalesForce Postback requires internal configuration on AEX’s part.

4.2. What Can Be Posted?

Data being posted back will vary based on each client. AEX has compiled a list of all fields associated with the ScanX Scorecard that can be sent if desired.

Note: Additional fields can be added to the list but will need to be collected prior to the Go-Live date to ensure the Postback is successfully sent all the data to the URL provided.

Standard ScanX Set-up Fields Listed Here:

ScanX Field Data Overvie…

You have completed your training on how to make updates to your scorecard! Please be sure to consult your risk and compliance team, as well as train your underwriters appropriately to be able to respond to the updates implemented. If you have any further questions on the technical details of this document, please reach out to support@agreementexpress.com.

Thank you and Happy Underwriting!