Payments Industry Updates | Audit & Compliance

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Tackling Third-Party Sender Risk With ePayAdvisors

Resolved to get a better handle on risk management in the new year? Start with Third-Party Senders!

The ACH Rules require that ODFIs know the nature of their customers’ use of the ACH Network. One of the trickier aspects of being an ODFI is recognizing and understanding Third-Party Senders, the complexities and unique risks they present, and how to thoroughly mitigate those risks to protect your institution. Third-Party Senders act on behalf of the downstream Originator. If your customer is originating entries on behalf of and for the ultimate benefit of its downstream customer (e.g., the Originator) that has the underlying payment obligation with the Receiver, it is a Third-Party Sender.

Do you know if any of your Originators are acting in this role, and if so, how do you ensure they are compliant with the rules and requirements that Third-Party Senders are subject to? There is a lot for your team to consider to limit your exposure, and ePayAdvisors can help.

Click the Read More button to read the complete blog from Tracy Merritt, Senior Vice President, ePayAdvisors.