LegitScript Unveils Next-Generation Merchant Underwriting Solution, Combining Kompliant Capabilities and Proprietary Risk Intelligence

AI-enhanced MCC detection, negative-file screening, and real-time website risk analysis bring deeper risk intelligence into configurable decision automation, helping acquirers surface risk earlier, approve merchants faster, and maintain an audit-ready record of every decision

PORTLAND, Ore.--(BUSINESS WIRE)--LegitScript, the leader in merchant and product certification and monitoring in the advertising, e-commerce, and payment sectors, today announced new capabilities for its Merchant Underwriting solution. Powered by workflow and decision automation technology from Kompliant, a LegitScript company, the expanded offering combines KYB, KYC, and fraud detection with LegitScript’s proprietary merchant risk intelligence within a configurable workflow built around each acquirer’s credit and risk policies.

“Payments companies are being asked to make underwriting decisions faster while the expectations around risk management, documentation, and defensibility continue to rise,” said Scott Roth, CEO of LegitScript. “When critical risk signals are fragmented across different systems and processes, meeting both of those demands becomes increasingly difficult. Merchant Underwriting is designed to bring that information together so teams can make more informed decisions without sacrificing the rigor their businesses and partners require.”

Deeper Merchant Risk Intelligence at the Point of Decision

Built on 20 years of proprietary merchant risk intelligence spanning high-risk merchant data, bad-actor networks, transaction laundering schemes, and violative content patterns, LegitScript Merchant Underwriting now brings three proprietary risk signals directly into verification results:

1. Merchant Category Detection (MCC Detect): Compares a merchant’s self-reported Merchant Category Code with LegitScript’s independently detected classification, surfacing mismatches, related MCCs, and potential risk indicators that might otherwise require manual review.
2. Merchant Match: Compares merchant details against LegitScript’s risk universe to uncover potential ties to known bad actors.
3. Web Content Scan: Analyzes merchant websites in real time for prohibited content and BRAM and VIRP card-network rule violations, adding website risk visibility directly into the underwriting process.

Expanded Underwriting Automation and Decision Support

The platform also adds and enhances capabilities designed to streamline how acquirers evaluate and manage merchant risk:

1. Kompliant-Powered Workflow and Decision Automation: Merchant Underwriting orchestrates verification checks, applies customized risk rules, and captures decision-support documentation and audit logs in one place.
2. Mastercard MATCH Pro Scoring: As a Network Enablement partner for Mastercard MATCH Pro, LegitScript applies AI-powered context analysis to potential matches, providing a high- or low-probability assessment.
3. Re-Underwriting on Demand: Enables acquirers to reassess approved merchants as their businesses and risk profiles evolve, helping surface changes in risk after initial onboarding and reduce downstream blind spots.

Beyond these capabilities, Merchant Underwriting brings together KYB, KYC, and fraud verification across pre-integrated data sources. Available checks span business and identity verification, beneficial ownership, sanctions and PEP screening, credit and financial risk indicators, and bank account verification.

“Speed matters in underwriting, but not if it comes at the expense of depth,” said Ruben Pizana, Chief Operating Officer at Onyx Processing, a merchant services provider (MSP) offering payment processing solutions across a range of industries. “LegitScript gives our team both. We can keep onboarding moving while getting deeper visibility into merchant risk, especially in more specialized industries where generic tools aren’t enough. That has helped us move from reactive investigations to proactive risk management, reduce manual effort, and make decisions with greater confidence.”

From Risk Signals to Decision-Ready Underwriting

“Every signal we surface helps underwriters improve time-to-decision and accuracy,” said Dan Frechtling, SVP of Product and Strategy at LegitScript. “By bringing those signals into Kompliant’s configurable workflow, we give underwriting teams the clear evidence and audit trails they need to move quickly and act with confidence. It’s the foundation for a more intelligent, deeply integrated underwriting platform.”

LegitScript Merchant Underwriting is part of the company’s broader Merchant Risk Solutions suite, which also includes Merchant Monitoring, Transaction Laundering Detection, Enterprise Certification, and Risk & Policy Advisory. Together, these solutions help sponsor banks, ISOs, and PayFacs identify and manage risk across the merchant lifecycle, from initial underwriting through ongoing monitoring and re-underwriting, while supporting growth into high-risk verticals.

To learn more about LegitScript’s latest innovations, visit legitscript.com.

About LegitScript

LegitScript, the global leader in Enterprise Risk Management Solutions, is trusted by the world’s largest search engines, e-commerce marketplaces, payment service providers, and social media platforms. By combining advanced, AI-driven technology with deep domain expertise and curated market intelligence, LegitScript empowers businesses to stay ahead of emerging threats and seize new growth opportunities with precision and speed. Our global team of regulatory experts and analysts is skilled at understanding global regulatory changes and assessing risk across products, websites, merchants, and platforms, providing clients with unmatched accuracy, actionable insights, and exceptional support.