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Insights and Expertise

based due diligence. The document details the specific a continual risk-based underwriting and monitoring
mandatory controls, which most acquirers and processors solution is a strategic advantage.
are fulfilling, but the process is complex. It is not
mathematically complex, but it is procedurally intricate For example, Coris, an AI risk platform, uses AI models
and multi-dimensional. Specifically, a merchant must be to evaluate merchants and transactions, learning typical
assessed for: patterns like refund spikes, large-ticket activity and
• Creditworthiness balance changes to surface anomalies automatically. One
platform using this approach reduced manual reviews by
• Fidelity with the stated business activity 89 percent and redirected analysts toward the cases that
• Compliance with Rules, laws and policy mattered most.
• Merchant and vendor PCI compliance AI won't replace risk professionals, but it will amplify
• Prior processing history their expertise. In a context where speed, precision and
• KYC/KYB compliance are paramount, AI is a necessity. By combining
adaptive intelligence with procedural transparency,
• Fraud acquirers can meet growing regulatory expectations while
Leaving this up to individuals requires extensively increasing operational efficiency.
trained people or a platform that not only provides for
a recommended credit decision, but also a documented As founder of Humboldt Merchant Services, co-founder of Eureka
history for the decision. Payments, and a former executive for such payments innovators as

Retrospection in action WePay, a division of JPMorgan Chase, Ken Musante has experience in
all aspects of successful ISO building. He currently provides consulting
While not required for monitoring, the underwriting data services and expert witness testimony as founder of Napa Payments
may be utilized in refining the monitoring parameters. and Consulting, www.napapaymentsandconsulting.com. Contact him
Optimally, the MCC, guarantor's credit, prior processing at kenm@napapaymentsandconsulting.com, 707-601-7656 or www.
history, online reviews, automated site inspection linkedin.com/in/ken-musante-us.
details and other data points are provisioned within
the monitoring decisions. Having this data allows for a
more fully baked monitoring system. It's not practical for
an individual to always consider these points, but an AI
model can. 2026 Events

VARS also has a monitoring requirement. Acquirers ATMIA US Conference 2026
and processors must monitor transaction and merchant Feb. 10 – 12, 2026 2026
activity to detect threats, unusual or suspicious activities/
transactions and use exception reporting to act upon Secure Technology Alliance
deviations. Identity & Payments Summit
March 2 – 4, 2026, Houston, Tx.
This is a broad and far-reaching requirement. And while
a rule-based system can incorporate data points from the
application, leveraging AI is far superior for anomaly Nacha’s Smarter Faster Payments 2026
detection and fraud scoring. The reason rule-based April 26 - 29, 2026, San Diego, Ca.
monitoring systems persist is they are far easier to set up
and are fully transparent. SEAA 2026
June 8 - 11, 2026, Miami, Fl.
The rules check for specific and known anomalies. But
they are costly to maintain, requiring far more manual MWAA 2026
reviews, and they will not adapt. AI-based monitoring can
incorporate thousands of additional data points. Yes, an July 22 - 23, 2026, Chicago, Il.
AI system is data dependent, but it can be trained with
existing portfolio history and then can be used to test Visit www.greensheet.com/datebook.php for
whether it would have provided appropriate alerts. more events and a year-at-a-glance event chart
The AI model is also far more scalable and will minimize or email events@greensheet.com if you have a
the overload of false alerts. event/show you wish to be listed.

AI can work after hours, weekends and holidays. It can
interface with a processor's CRM to provide merchant
notices and set queues based on the merchant type, sales
team or some other indicator. Demand from regulators,
card networks and acquirers is growing. Developing
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