US' Third Party Payment Processors Association launches Compliance Management System

WASHINGTON | The Third Party Payment Processors Association (TPPPA), the newly formed not-for-profit US industry association representing and promoting the interests of payment processors, their banks and merchants, announced today that it will launch its version of its Compliance Management System (CMS) at Payments 2014, NACHA’s conference for the electronic payments industry.


'Payment integrity and excellence'

“The hallmark of the TPPPA is promoting compliance as the pathway to achieve payments integrity and excellence,” explains Marsha Jones, TPPPA President. “With the launch of our new Compliance Management System (CMS), we are providing our processor and financial institution members the tools to effectively navigate the myriad of rules, regulations and guidance set by regulatory agencies and rule-making bodies, such as NACHA, on an ongoing basis. Each of the CMS’s policies are crafted to address the oversight of these bodies and to meet the specific needs and responsibilities of both processors and their financial institutions to support overall compliance.”


15 policies

The TPPPA’s proprietary Compliance Management System (CMS) is comprised of policies that have been tailored to the unique needs and responsibilities of both categories of TPPPA members. The processor module contains over 15 policies specifically written for payment and payroll processors that incorporate guidance for due diligence and enhanced due diligence. These policies include:

  • ACH
  • Red Flags
  • Privacy
  • Consumer Complaints
  • Compliance with Telephone Consumer Protection Act
  • Compliance with Fair Debt Collections Act
  • Compliance with Fair Credit Reporting Act
  • And more

CMS modules

The CMS processor module gives each processor the ability to customise their procedures to fit their unique processing environment while remaining in alignment with the association’s standards. The FI module is geared toward financial institutions that have third party payment processors as their clients, and helps incorporate their existing policies into a cohesive program for third party payment processing. This module highlights issues that a financial institution needs to address to ensure proper due diligence and ongoing monitoring and management of their processor relationships. Content included in both CMS modules focuses on the following broader categories:

  • Risk Assessment (Due Diligence and Underwriting)
  • Agreements
  • Merchant Training
  • Ongoing Monitoring
  • Periodic Review
  • Escalation and Reporting Suspicious Activity
  • Termination of Merchant Relationships

Close Compliance Gaps

“With the CMS, TPPPA’s members have the tools to confidently address their regulatory responsibilities related to processing payments, and close the compliance gaps that leave members vulnerable to law enforcement and regulatory actions such as those in Operation Choke Point,” concludes Jones. “TPPPA members can focus on delivering an exceptional user experience, which is both compliant and efficient, to their customers. When processors and their financial institutions are compliant, this lays the groundwork for their merchants’ compliance, which in turn protects consumers and promote a healthy economy.” To learn more about the TPPPA and its proprietary Compliance Management System, visit the website




The Third Party Payment Processors Association (TPPPA) is a national not-for-profit industry association representing and promoting the interests of the payment processors, their financial institutions and their merchants. TPPPA advocates on behalf of its members to the industry and government, educates its members on the latest rules and regulatory updates, and provides comprehensive tools to support operational excellence and integrity in payments.


 Sourced from TPPPA, April 3rd, 2014

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