LegitScript Enhances Merchant Underwriting with AI-Driven Risk Intelligence and Kompliant Automation

LegitScript has expanded its Merchant Underwriting solution by integrating automation technology from its subsidiary, Kompliant. This update allows acquirers to combine KYB and KYC processes with proprietary risk intelligence, addressing the growing pressure on payments firms to accelerate onboarding without compromising on the rigorous risk management and defensibility required by global card networks.

What was announced

The updated Merchant Underwriting platform is designed for acquirers and payment companies to streamline the evaluation of merchant risk. By leveraging 20 years of proprietary data on high-risk merchants, transaction laundering, and bad-actor networks, the solution now incorporates three specific risk signals directly into the verification process. The platform is already being utilized by merchant services providers like Onyx Processing to manage onboarding for specialized industries where generic risk tools often fall short.

• Merchant Category Detection (MCC Detect): This feature identifies discrepancies between a merchant’s self-reported Merchant Category Code and LegitScript’s independent classification, surfacing potential risk indicators that may be hidden.
• Merchant Match: This cross-references merchant details against a vast risk universe to identify links to known bad actors and illicit networks.
• Web Content Scan: This provides real-time analysis of merchant websites to detect prohibited content or violations of card-network rules, such as those defined by BRAM and VIRP.

Beyond these signals, the platform introduces workflow automation powered by Kompliant, allowing for a configurable environment tailored to an acquirer’s specific credit and risk policies. The integration also features Mastercard MATCH Pro Scoring and the ability to perform on-demand re-underwriting, which allows for continuous monitoring of merchant portfolios rather than just a one-time check at onboarding. This combination of KYC, KYB, and fraud detection aims to provide a defensible audit trail for compliance teams while reducing the manual effort required for reactive investigations.

"Payments companies are being asked to make underwriting decisions faster while the expectations around risk management, documentation, and defensibility continue to rise. 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."

Scott Roth, CEO of LegitScript

The companies involved

LegitScript, headquartered in Portland, Oregon, operates as a specialist in merchant and product certification across the e-commerce, advertising, and payment sectors. The company has established itself as a primary source of risk intelligence, particularly for high-risk industries where regulatory scrutiny is intense. Its data is frequently utilized by major card networks and internet platforms to monitor for illicit activity, transaction laundering, and policy violations.

Kompliant is a LegitScript company that focuses on providing the underlying workflow and decision automation technology for the platform. As a subsidiary, Kompliant enables the technical infrastructure that allows financial institutions to automate complex compliance tasks. The relationship between the two entities allows LegitScript to combine its deep risk data with Kompliant’s software capabilities, creating a unified environment for merchant lifecycle management. This integration is central to the company’s position in the market, moving beyond simple data provision toward providing end-to-end underwriting and monitoring solutions for the global payments sector.

What FF News has reported before

FF News has followed the development of both LegitScript and Kompliant as they expand their footprint in the risk management space. In June 2026, we covered how LegitScript Launches Risk & Policy Advisory to Tackle AI-Driven Fraud and Regulatory Shifts. Our reporting on Kompliant includes their efforts to scale operations, such as when Kompliant Expands Executive Bench, Names Casey Zenner as Chief Revenue Officer in late 2024. Additionally, we reported on their infrastructure partnerships, including a Kompliant Announces Strategic Relationship with the Digital Solutions team at Equifax to Deliver Fraud Prevention and Risk Management Solutions. Earlier that year, we also highlighted how Merrick Bank Partners with Kompliant to Transform the Merchant Onboarding Experience, demonstrating the company's adoption among financial institutions.

What this means

This announcement highlights a critical shift in the merchant acquisition market: the transition from fragmented point solutions to integrated risk ecosystems. As regulators and card networks increase pressure on acquirers to justify their merchant portfolios, the traditional model of manual, siloed underwriting is becoming a liability. By embedding real-time web scanning and MCC detection directly into the onboarding workflow, LegitScript is challenging competitors who rely on static data. The industry is moving toward a standard where speed to market must be backed by a transparent, automated audit trail, putting significant pressure on legacy providers who cannot offer the same level of granular, real-time intelligence.