Why You Need Compliance for Financial Institution Payment Processing

Compliance in Financial Institution Payment Processing

The nature of all financial institutions, like a credit union, is to hold and secure sensitive information. For that very reason, companies that partner with electronic payments companies need to be highly regulated and meet the highest levels of compliance and security to keep your customer’s banking information safe and sound. At BillingTree, we take security very seriously and comply with all applicable regulations.

One of the most damaging things to a credit union’s reputation is a data breach. You hear it on the news all the time. Understandably, when these issues happen, stocks for even Fortune 500 companies can plummet. You can imagine how devastating the impact would be on a smaller business.

When choosing which payment processor to handle this sensitive information, it is critical to see what level of compliance they meet and how well they stay up to date. By adhering to best practices for security and compliance, your business is protected from attacks and data breaches. You need a safe and reliable way to stay up to date with the latest compliance and security available; that’s where BillingTree comes in.

Financial Institutions: Simplifying Compliance

It may seem overwhelming to keep up with compliance for financial institutions. There are always new regulations, additional ways hackers can access systems, and updated compliance rules to learn for the variety of customers/industries you service.

In the interest of simplifying this complex topic, here is a quick overview of the top compliance areas that every payment platform needs to have.

PCI-DSS: This is the most well-known compliance standard, and it was created to enact controls around how companies handle cardholder data to decrease credit card fraud. Give some bonus points to your payment provider if they are Level 1 certified because that means they have successfully processed more than 6 million Mastercard or Visa transactions annually.

NACHA: Formerly the National Automated Clearing House Association, this organization has created rules and standards around ACH or eChecks, where a consumer uses a checking account to remit payments either online, via IVR, or through a phone-assisted process with a live agent.

SSAE 18: Sometimes called the Statement on Standards for Attestation Engagements (SSAE) 18, SOC 1 compliance focuses on an organization’s controls around financial statements and encompasses an audit-related to these financials. SOC 2 covers a company’s controls related to operations and compliance, and more specifically, its security, availability, processing integrity, confidentiality, and privacy. This is the most up-to-date and comprehensive version of this compliance area.

HIPAA: If you operate in the healthcare industry, HIPAA is not optional; it is a requirement. Simply put, HIPAA handles the privacy and portability of consumers’ personal healthcare information and ensures security for personally identifiable information, including payment information. There have been recent breaches in the medical industry, so compliance is critical.

Takeaways

Now you know the basics of areas you must master to minimize the chances of a breach. The great news is that BillingTree can help you stay compliant because we have an entire compliance department dedicated to helping you minimize the risk and lower your chances of a breach. In addition, at BillingTree, there are several Accredited ACH Professionals (AAPs) on staff, for an extra level of confidence and trust.

We recommend you take the next step by requesting a processing compliance review. We will provide a complimentary evaluation of your current environment and uncover some opportunities to fill any gaps in your payment acceptance process. Get started today.