Why Manual Underwriting is Failing High-Risk Merchants in 2024

The world of high-risk payments is evolving faster than ever. From hemp and cannabis to firearms, adult content, and crypto transactions, payment providers are struggling to keep up with new laws, changing compliance rules, and fraud risks.

Yet, many banks and processors still rely on manual underwriting, a slow and outdated system that can’t handle the complexity of today’s high-risk industries.

The Problems with Manual Underwriting

High-risk businesses are constantly monitored for regulatory violations, fraud risks, and payment chargebacks. But traditional underwriting wasn’t built for industries that evolve so rapidly. Here’s why:

1. Too Slow – Manual underwriting takes days or weeks to process applications, causing merchants to lose business opportunities.
2. Inconsistent Risk Assessments – Underwriters interpret rules differently, leading to random approvals or rejections.
3. Reactive Instead of Proactive – Most compliance checks are done only at onboarding, leaving gaps in ongoing monitoring.

As a result, many high-risk businesses face sudden payment shutdowns due to outdated risk reviews—even if they are fully compliant.

Automated Compliance is the Solution

Complex Compliance eliminates these issues by automating both underwriting and continuous compliance monitoring. Our system uses AI and data-driven insights to:

✅ Assess Merchant Risk Instantly – Approve or flag merchants in seconds, not weeks.
✅ Monitor Transactions Continuously – Prevent payment providers from getting caught off-guard by sudden compliance violations.
✅ Ensure Regulatory Adaptation – Automatically adjust risk models as new laws and industry changes emerge.

For payment providers, this means fewer chargebacks, lower risk, and faster approvals. For merchants, it ensures they stay bankable and compliant without constant manual intervention.

As regulations continue to tighten across multiple high-risk industries, manual underwriting is becoming a liability rather than an asset. Complex Compliance provides a scalable, automated solution to keep payments flowing safely and efficiently.

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