NCUA Issues Checklist For Evaluating Payment System Service Providers
Credit unions should perform thorough due diligence to determine their risk exposure from using corporate credit unions compared to using third-party firms, the NCUA advised credit unions in a letter sent last week.
The letter advises credit unions to have policies that define their level of risk tolerance. In addition, when deciding on a payment service provider, credit unions should evaluate the monitoring costs. This includes staffing, capital expenditures and technological investment.