“A Federal Deposit Insurance Corp. advisory warning banks to be vigilant about processing payments for fraudulent merchants has been revised after an outcry by Republican lawmakers that it targeted legitimate businesses.”
According to the FDIC on July 28, 2014 it eliminated from the advisory a list of examples of risky merchant categories that “led to misunderstandings” about how it’s supervising banks’ ties to third-party payment providers. The agency said in a statement today that it never meant to ban banks from doing business with the types of merchants on its list.
“Those that are operating with the appropriate systems and controls will not be criticized for providing payment processing services to businesses operating in compliance with applicable law,” the agency said in its updated industry guidelines, revising a document issued in September.