Why PSPs Reject AI Agents

🚩 Red Flag #1: 'Autonomous' in Your Business Description

PSPs scan applications for keywords. "Autonomous", "fully automated", "no human involvement" = instant red flags.

✅ Fix: Reframe as "AI-assisted" or "user-directed". Emphasize human oversight.

🚩 Red Flag #2: High Transaction Velocity (>100 TXN/Day)

PSPs see "bot fraud" or "money laundering" when agents process hundreds of daily transactions.

✅ Fix: Implement rate limiting (max 50 TXN/day per user). Show velocity controls in application.

🚩 Red Flag #3: No Visa TAP or Identity Protocol

Without cryptographic proof, you can't prove agent identity → Higher fraud risk.

✅ Fix: Implement Visa TAP (RFC 9421). Adds +8 AgentScore points, 15% higher approval odds.

🚩 Red Flag #4: Vague 'AI Platform' Business Model

PSPs need specifics. "AI platform" descriptions trigger underwriting delays.

✅ Fix: Be specific. "AI travel booking agent (flights + hotels)" not "AI platform".

🚩 Red Flag #5: No Chargeback Prevention Plan

PSPs ask: "How will you stay below 0.9% disputes?" No answer = Rejected.

✅ Fix: Document prevention: Human-in-loop >$100, consent receipts, post-TXN notifications.

🚩 Red Flag #6: Wrong Region/Industry Fit

Stripe loves US/EU e-commerce. PayPal loves low-ticket goods. Applying to wrong PSP = wasted time.

✅ Fix: Use AgentGuard to predict approval odds per PSP. Apply to top 3 matches first.

🚩 Red Flag #7: No Website or Weak Documentation

If site looks unfinished or has no ToS/Privacy Policy → Rejected.

✅ Fix: Minimum: Working demo, ToS, Privacy Policy, Refund Policy, Contact page.

4-5%

Overall approval rate

Agents who apply blindly

67%

Overall approval rate

AgentGuard users (13x better)

Week 1: Initial Screening (Automated)

PSP system scans for red flag keywords. Checks website (ToS, privacy policy, working links). 80% of AI agents fail here (instant rejection).

Week 2-3: Manual Underwriting

Human reviewer reads business description. Checks for prohibited industries (crypto, gambling). Evaluates chargeback risk. 15% pass this stage.

Week 3-4: Final Decision

Risk team reviews transaction patterns. Compliance check (GDPR, PCI-DSS, regional regulations). 5% get approved (of those who made it to Week 2).

Switch from autonomous → hybrid for high-value transactions

Implement Visa TAP (RFC 9421) if processing >$10K/month

Website essentials: ToS, Privacy Policy, working demo, contact page

Documentation: Business plan, chargeback prevention plan, transaction flow diagram

Run AgentGuard assessment to find best-fit PSPs (apply to top 3 only)