03-29-2015, 08:52 AM
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Phonetically Sexy
Industry Role:
Join Date: Dec 2002
Location: USA
Posts: 312
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Here's an article by Rob Blackwell in "American Banker" saying the FDIC has withdrawn that high risk list, but the damage is done, right? Most bankers aren't going to get a memo or retraining saying porn is okay again.
Quote:
WASHINGTON ? The Federal Deposit Insurance Corp. said Monday that it has withdrawn a list of merchant categories, including payday lenders, debt consolidation firms, pornography businesses and others, that it said warranted heightened attention by banks processing their transactions.
In a letter to financial institutions, the agency said the list, which was first published three years ago, had been misinterpreted, resulting in banks' severing ties with legitimate businesses.
"The lists of examples of merchant categories have led to misunderstandings regarding the FDIC's supervisory approach to institutions' relationships with [third-party payment processors], resulting in the misperception that the listed examples of merchant categories were prohibited or discouraged," the FDIC wrote. "In fact, it is the FDIC's policy that insured institutions that properly manage customer relationships are neither prohibited nor discouraged from providing services to customers operating in compliance with applicable federal and state law."
The move is another dramatic turn in the battle over efforts by state and federal authorities to cut off certain business' access to the payment system.
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