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Wednesday, October 10, 2018

ETA SRP finds broad support, implementation

Just over a month after the Sept. 4, 2018, launch of the Electronic Transactions Association's Self-Regulation Program (ETA SRP), the global trade association has garnered positive reviews and broad support for the program across multiple payments channels. Designed to provide industry stakeholders with practical tools and guidance, the program sends a clear message to lawmakers that the payments industry adheres to consistently high standards of ethics, security and risk management, said Jason Oxman, CEO of the ETA.

"The ETA Self-Regulation Program affirms the payments industry's commitment to maintaining robust risk management programs and provides a benchmark for the industry," Oxman stated. "The ETA SRP also demonstrates to various federal regulatory bodies that our industry is not only capable of self-regulation but will continue to take concrete steps to mitigate instances of abuse."

Oxman additionally noted the ETA SRP program provides separate tracks for merchant acquirers and payment facilitators engaged in developing risk management policies. Based on the ETA's Risk Guidelines for Merchant and ISO Underwriting and the Risk Guidelines for Payment Facilitators, the programs provide a roadmap to compliance and best practices, he said. ETA members specializing in these areas continually update guidelines according to ever-changing government and payment card industry regulations, he noted.

ISO, acquirer attestation

ETA Guidelines on Merchant and ISO Underwriting and Risk Monitoring provides tools for payment companies to work toward a common goal of self-regulation of the payments industry. Any third-party service provider in the payments ecosystem that underwrites merchants or ISOs can participate in the ETA SRP program, the ETA stated. Enrolled merchant acquirers and ISOs that meet risk management requirements and attest to implementing ETA SRP guidelines become credentialed ETA SRP companies. ETA representatives said participants receive a certificate they can display on their websites and promotional materials. The ETA will also list participating companies on its websites and notify federal regulators of their active ETA SRP status. Additional opportunities to present at ETA events and receive exclusive discounts for ETA programs will also be made available to enrolled participants, the ETA stated.

Global Payments and Worldpay were among the first companies to receive the certificate. Jeff Sloan, CEO at Global Payments, called ETA SRP "a tangible step taken by the payments industry to ensure stakeholders are committed to utilizing best practices."

Payfac attestation

Payment Facilitator Guidelines, developed by ETA working committees, outlines requirements for onboarding sub-merchant accounts while helping payfacs identify anomalous or fraudulent transactions. Deana Rich, CEO of Rich Consulting and Todd Ablowitz, CEO of Double Diamond Group, have been actively involved in the ETA's payment facilitator working group and recently launched a suite of services designed to help companies implement the ETA SRP.

Rich commended the payments industry's support of the program and its early implementers. "While a few industry actors have experienced the impact of government intervention, following a self-regulatory process will go a long way in preventing industry-wide regulatory oversight and will ultimately benefit the industry, merchants and consumers," she stated.

Ablowitz concurred, adding, "The vast majority of the work we do with payment facilitators, banks and acquirers around the world is focused on ensuring they have best in class processes and operations in place to manage risk. This experience is reflected in the guidelines we helped developed on behalf of ETA and is the foundation of our SRP Readiness Program. We want to make sure that payments companies who attest to their compliance with the SRP are 100 percent capable of withstanding the inevitable scrutiny from the regulators that will come." end of article

Editor's Note:

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