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Merchant Underwriting Handbook for Compliance Teams

Essential Merchant Underwriting Strategies and Compliance Frameworks for Risk-Savvy Teams

Merchant Underwriting Automation: What to Automate and What Not To

A Practical Guide to Automating Routine Underwriting Tasks Without Sacrificing Risk Quality

How Underwriting Evolves for High-Risk Business Models

When the stakes are higher, the rules change. Explore how underwriters evaluate high-risk business models and what it takes to maintain a healthy processing relationship in volatile industries.

Why Underwriters Say No: Common Red Flags in Merchant Onboarding and How to Fix Them

A structured look at the 6-step underwriting workflow: application intake, business verification, financial assessment, compliance screening, risk scoring, and final decisioning.

Merchant Counterfeit Risk: A Practical Framework for Payment Processors and Acquiring Banks

In an era of sophisticated fakes, standard KYB isn't enough. Our framework helps acquirers move beyond basic checks to proactive detection of intellectual property (IP) violations and illicit trade.

Marketplace Seller Risk Management: A Compliance Framework for Payment Processors and Platforms

A systematic approach to detecting and preventing prohibited seller activity in marketplace environments, with actionable protocols and risk controls for payment processors, acquirers, and marketplace operators.

Subscription Billing Risk Management: A Control Framework for Payment Processors

Reduce portfolio dispute rates and regulatory risk through systematic assessment of trial-to-subscription billing practices against FTC Negative Option Rule requirements.

Detecting Aggregator-Within-Aggregator: A Compliance Framework for Payment Processors

Hidden nested aggregators create "blind spots" that lead to massive card scheme fines and regulatory scrutiny. This guide outlines a robust framework for identifying multi-layered merchant relationships, improving your KYB accuracy, and ensuring your risk monitoring covers every layer of the payment chain. Don't let sub-merchants hide in plain sight.

How to Detect When a Platform Is Acting Like an ISO

A comprehensive framework for payment processors and acquirers to identify platforms that have crossed the line from technology provider to Independent Sales Organization without proper registration or compliance.

How to Detect Trial to Subscription Controls

A comprehensive framework to assess subscription billing controls, evaluate disclosure quality, and reduce dispute risk during merchant onboarding and monitoring.

Understanding Underwriting Models Across PSPs, PayFacs, and Acquirers

The merchant landscape is more diverse than ever, and so are the risks. While Payment Service Providers (PSPs), Payment Facilitators (PayFacs), and Acquirers all share the goal of enabling commerce, their approaches to risk assessment vary significantly based on their regulatory exposure and place in the payment flow. This guide breaks down the core differences in underwriting models, exploring how each entity balances automated speed with manual due diligence to manage fraud, credit, and compliance risks.

What is Merchant Underwriting

Merchant underwriting is the critical risk-assessment process that determines a business’s eligibility to process payments. This overview breaks down how the process works and examines the key factors underwriters evaluate, such as financial stability and industry risk. It also explores how automation is transforming onboarding from a weeks-long bottleneck into a competitive advantage.

How to Detect Business Model Misrepresentation: When Merchants Say They Sell X but Evidence Says Y

A practical framework for risk teams to validate merchant representations by examining operational evidence across checkout flows, policies, and technical infrastructure.

How to Detect if a PayFac is Proving Sub-Merchant Control

A focused framework to verify whether payment facilitators maintain actual oversight of sub-merchants during onboarding and ongoing monitoring

How to Detect Reseller vs Counterfeit Operations Without Being IP Lawyers

A practical framework to verify authenticity and supply chain legitimacy when onboarding merchants selling branded goods, luxury items, and high-demand products.

How to Detect Prohibited Activity Hiding Inside Marketplaces

This guide provides a systematic approach for marketplaces to detect and prevent prohibited seller activity before it scales, offering a detailed framework to identify hidden violations, enforce category rules, and maintain platform integrity through active monitoring and rapid response.

Why PayFacs and ISOs Face VAMP Fees for Acquirer-Level Exposure They Didn't Create

When Acquirers Enter Visa's Monitoring Program, Downstream Partners Pay the Price. Here's How to Prove Your Merchants Aren't the Problem.

Detecting Dropshipping Risk Signals Guide

A dropshipping risk guide for acquirers and PSPs covering dispute drivers, core checks (supplier, fulfillment, delivery claims, returns, support), and evidence to collect for underwriting and ongoing monitoring.

Supplement Merchant Underwriting

Payment processors and acquiring banks face a critical challenge with supplement merchants: distinguishing legitimate products from disguised pharmaceutical operations that create regulatory, chargeback, and network compliance exposure.

A risk-led dropshipping underwriting framework for PSPs and acquirers

Gain a structured, evidence-based framework for evaluating dropshipping merchants, with actionable verification protocols and risk controls tailored for payment processors, acquirers, and underwriting teams.

Sanctions Screening When Data Is Incomplete

Learn how to build rigorous sanctions screening programs when customer data is fragmented, with actionable best practices for financial institutions, payment processors, and compliance teams.

The Merchant Types Most Likely to Trigger Visa's VAMP Program in 2026

How PSPs and acquirers can identify high-exposure profiles before they breach portfolio thresholds

Transaction Laundering Detection for New Merchant Onboarding

Gain an evidence-based approach to identifying transaction laundering at the new Merchant ID (MID) stage, with operational controls and investigation protocols designed for acquirers, PayFacs, and payment risk teams.

Detecting Aggregator-Within-Aggregator: A Payment Compliance Framework

Nested payment relationships can hide high-risk sub-merchants and trigger regulatory fines. We provide a practical compliance framework to uncover "aggregators-within-aggregators," giving you full visibility into your merchant ecosystem. Learn how to strengthen your KYB and transaction monitoring to stay ahead of card scheme audits.

How to Distinguish Adult Platform Operators from Marketing Agencies

Distinguish legitimate marketing agencies from disguised platform operators before misclassification creates portfolio exposure.

How to Detect Adult Industry Operators Disguised as Marketing Agencies

A focused framework to detect adult content operators misrepresented as "marketing agencies" during merchant onboarding and monitoring.

How to Determine if an Offshore Gambling Operator is Taking US Cards: A Compliance Verification Framework

A practical guide for payment and risk teams to verify whether offshore gambling operators are truly blocking US transactions or simply claiming they do

How to Distinguish Sports Tips from Unlicensed Betting: A Payment Compliance Framework

How payment and risk teams can identify tipster activity, licensing gaps, and hidden betting exposure before it becomes a portfolio issue.

How to Underwrite Gambling Merchants: A US Licensing and Payments Framework

Master the complexities of US gambling merchant underwriting. This comprehensive guide breaks down essential licensing requirements, payment frameworks, and risk mitigation strategies to help financial institutions confidently navigate and scale within the highly regulated online gaming industry.

Modern Merchant Risk: What Traditional Scoring Misses (and How to Fix It)

Why checklist based underwriting no longer works and what risk teams must monitor to spot merchant shifts before losses appear.

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