A newly formed Third Party Payment Processors Association (“TPPPA”) will advocate for third-party processors, their financial institutions, and the merchants and consumers who benefit from the payment processing system. Ten leading national payment processors, together responsible for over 90 million transactions a year, formed TPPPA a few months ago to join forces in response to recent actions by regulators and law enforcement directed toward eliminating what they perceive to be objectionable payments. Processors help in fighting fraud by performing thorough due diligence and transactional monitoring. By positioning themselves to identify fraudulent transactions and to react quickly and effectively, processors play a key role in reducing risk.
Through raising the standards for payment processors, the association intends to demonstrate to regulators and law enforcement that the industry will take an active role in the effort to eliminate fraudulent merchants from the payment system. Processors must apply for membership and comply with a strict code of conduct.
More information about TPPPA may be found here.