US acquirers face instant payment challenges. What best practices should they consider? #banking

Consider this scenario: instant payments take off in merchant acquiring in the US tomorrow. How can acquirers safeguard their portfolios or revenue from bad merchants?

This is especially relevant if an acquirer is not directly acquiring that merchant and lacks visibility into the merchant's risk. Therefore, it is crucial to implement protocols and systems to monitor the merchant's activity. This includes tracking transaction volumes, understanding the merchant's typical sales patterns (e.g., sales during the night or from different parts of the world), identifying the merchant's niche market, and monitoring for potential bust-out situations or impending bankruptcy.