Hierarchical Structure - Merchant Configuration

Polaris uses a three-tier hierarchical structure to manage payment configurations efficiently:

Client / Division / Merchant

1. Client: The top-level entity that owns all divisions and merchants within the structure. This level has overarching control.
2. Division: Divisions represent organizational units or regions within the client. Each division can operate independently with specific payment methods, currencies, and configurations.
3. Merchant: Merchants are the entities responsible for processing payments. They reside within divisions and can be configured with their payment channels, limits, and currencies, providing flexibility for diverse business needs.

INFO

Risk & Payment Configurations
Each level of the hierarchy — Client, Division, and Merchant — can define its own risk and payment configurations, which cascade down to provide a consistent framework for the entities below. This allows for efficient management of risk settings and payment rules across the entire structure.

Channel

A channel is uniquely associated with a single merchant, but a merchant can have multiple channels. Channels allow merchants to segment their operations based on different sales channels or product portfolios. Here are two examples:

• Sales Channel Differentiation: A merchant could define separate channels for online and in-app sales, enabling tailored payment methods and risk controls for each sales environment.

• Product Differentiation: A merchant might set up one channel for a high-end product line and another for accessories, with each channel having its own payment methods and risk rules to match the product type.

This setup allows merchants to adapt their payment and risk strategies to fit specific business needs and models.

Example for an International Company Setup

An international retail company with operations in multiple countries can use Polaris to create a hierarchical structure that mirrors its global business model. For example:

• Global Headquarters (Client Level): The top-level entity that controls overarching business decisions and oversees all payment configurations for the company.
• Regional Divisions: Distinct divisions representing large regions (e.g., Europe, Asia) or different national contexts (e.g., Germany, Switzerland, France), each with its own financial and operational settings.
• Individual Merchants: Within each division, there may be multiple merchants operating in local markets or different market segments, allowing for targeted payment strategies and customer experiences.
• Channel: Channels are created to split sales between different environments, such as online and in-app sales, or to manage different product lines, each with specific payment methods and risk controls.

The diagram below illustrates the hierarchical structure of a typical merchant configuration in Polaris, showing how Clients, Divisions, Merchants, Channels, and Connectors are organized. On how to set up connectors follow this link.