Don’t get me wrong…..it’s definitely good news. Until we hear from the third party processors via their banks, let’s not celebrate just yet. This sums it up:
“Institutions could be exposed to financial or legal risk should the legality of activities be challenged.”
Basically, what they’re saying is if you’re a bank or a third party processor that works with “high risk” clients, you better be able to lawyer-it- up.
The good news is that they also said…
“Facilitating payment processing for merchant customers engaged in higher-risk activities can pose risks to financial institutions; however, those that properly manage these relationships and risks are neither prohibited nor discouraged from providing payment processing services to customers operating in compliance with applicable law.”
You can read the full letter at on the FDIC website here.
