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Thursday, 31 July 2014

FDIC Clarifies Third-Party Payments Risks


From Bank Info Security

“The Federal Deposit Insurance Corp. this week removed its list of high-risk merchant categories from guidance and informational articles related to third-party payment processors.

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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