Hi,
We may have a third-party payment processor (we never have one before). I am still in process of doing due diligence. I looked at FFIEC BSA manual for 3rd Party Payment Processor and have required information from the customer according to the manual such as merchant base, activities, volume, their underwriting/OFAC policy……. However, I still have some questions.
Hope any guru or any banker with third party payment processor experience can give me insight? Any opinion/suggestion/thoughts will be appreciated!!
1. I don’t have a complete merchant list yet, but I know this potential customer processes transactions for a pay day lender. Is there any additional things I need to pay attention besides due diligence for regular merchant? Any guidance I can look at (we don’t have pay day lender customer so this is kind of foreign to me too)?
2. How everybody monitor ACH return rate? Do you use special software, a system report or manually calculate? We called our core system (Fiserv Cleartouch) they told us they don’t have a one.
3. Does anyone require reserve balance, if yes, how much you require?
4. Any other things not listed on Manual but can help me to manage our bank’s risk?
Many thanks again in advance!