Third-Party Payment Processors: Risk and Regulation

by KirkpatrickPrice / January 7th, 2016

Are you looking to learn about compliance risk and the importance of having effective compliance management systems? Are you unsure about what regulations apply to payment processing and need to review the regulatory landscape? Are you looking to learn about enforcement actions brought against banks and payment processors and what it could mean for you and your organization? This webinar educates listeners with an overview of third-party payment processors (TPPP), risk and regulations of TPPPs, and how they can impact your organization.

What is a Third-Party Payment Processor?

A third-party payment processor is a depository customer of a bank that uses their banking relationship to process payments on behalf of other companies through its bank. They are typically referred to as processors that process ACH and/or remotely created checks (RCC), although it is typically much broader than that because banks to do not have a contractual relationship with the TPPP’s merchant clients, so you can have credit cards, checks that are not remotely created, and return products that fall under this umbrella term. It is also important to note that TPPP is also synonymous with TSP, or third-party senders, by NACHA if they are processing ACH payments and must adhere to the third-party vendor requirements under the rules.

What Regulations Apply to Third-Party Payment Processors?

The following regulations that have been implemented for electronic payment processors are:

  • Electronic Funds Transfer Act (EFTA)
  • Truth-in-Lending Act (TILA)
  • Consumer Financial Protection Act (CFPA)
  • Federal Trade Commission Act (FTC Act)
  • Bank Secrecy Act
  • NACHA Operating Rules

Watch the full webinar to learn more about third-party payment processors, the risks and regulations associated with them, and how you it could impact your organization. For more information, contact us today.