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The human who approves a merchant account may eventually review fewer files, but the cases left on that person’s desk will demand more judgment.

For Bill Christensen, senior vice president of risk and underwriting at Maverick Payments, the approval most likely to remain with a person concerns a business that falls outside established rules or familiar operating patterns. Automating routine reviews leaves underwriters to determine whether an unusual account can be accepted and under what conditions.

Speaking with PYMNTS for the What’s Next in Payments series, “The Last Thing a Human Will Need to Approve,” Christensen described a future in which people retain authority over exceptions while assuming broader responsibility for the systems handling everyday decisions.

The movement toward automated handling of predictable accounts is expected to continue over the next two or three years. Cases considered borderline today could become routine as information improves, provided models become more reliable and controls mature.

Merchant underwriting illustrates why a final approval can resist automation. Two businesses can look nearly identical in their data yet create different exposures. Christensen cited merchants sharing a merchant category code, despite differences in how they deliver services and operate.

An underwriter needs to understand how each business operates, how it accepts payments and where a loss could arise. Conflicting signals can require further examination before anyone can decide whether the account belongs within acceptable limits.

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