The banking regulator says the clarification was made to eliminate confusion among smaller banking institutions, which had expressed concern about doing business with merchants associated with high-risk businesses, such as payday lenders and check-cashers.
Guidance and articles amended to reflect the clarification include the FDIC's 2008 Guidance on Payment Processor Relationships and the revision to that guidance issued in 2012; the FDIC Supervisory Approach to Payment Processing Relationships With Merchant Customers That Engage in Higher-Risk Activities; and an informational article, "Managing Risks in Third-Party Payment Processor Relationships," published in the summer 2011 edition of the FDIC's Supervisory Insights.”
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