Published: October 2015

Payment processors can play a key role in mitigating fraud

With the increasing role of electronic commerce and the alarming escalation of data breaches, stronger efforts to deter, detect and remedy fraud are needed. Third-Party Senders (also called payment processors) play a critical role in many fraudulent schemes by enabling scammers to take unauthorized and fraudulent charges from consumers’ accounts. However, registration requirements and enforcement tools will help NACHA protect consumers by preventing fraud.

Consumer Action joined privacy and consumer advocates in commenting on NACHAs proposal to require registration of Third-Party Senders (also called payment processors) that assist consumers in making purchases with their financial accounts. Advocates support the measures outlined in NACHAs proposal and urged the agency to strengthen it by undertaking other efforts (outlined in the letter) that will improve the ability to detect fraud before it happens.

Lead Organization

National Consumer Law Center (NCLC)

Other Organizations

National Consumer Law Center (on behalf of its low income client) | Consumer Federation of America | Center for Responsible Lending | Consumer Action | Consumers Union | National Association of Consumer Advocates | National Consumers League | U.S. PIRG

More Information

For more information, please visit NCLC's website.

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Payment processors can play a key role in mitigating fraud   (CommentsonNACHA.pdf)