Adverse media screening  also known as negative news screening  is the process of searching public sources for negative information about a merchant, its owners, or related entities. This includes checking news articles, legal filings, enforcement actions, regulatory blacklists, and media reports for signs of criminal activity, fraud, corruption, or reputational risk.

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For acquirers, PayFacs, and ISOs, adverse media screening is a key part of merchant due diligence, particularly during onboarding and ongoing monitoring. It helps identify whether a merchant (or its UBOs or directors) is linked to:

• Fraud or financial crime
  
• Bankruptcy or insolvency proceedings
  
• Regulatory fines or enforcement actions
  
• Scams, fake reviews, or consumer complaints
  
• Other high-risk behavior flagged in public domains

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Adverse media findings don’t always trigger automatic rejection  but they signal that deeper investigation may be needed. Screening tools typically use AI and natural language processing to surface relevant matches, which are then manually reviewed by compliance teams.

By catching reputational red flags early, payment providers can prevent onboarding merchants that may later result in financial loss, regulatory issues, or brand damage.

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