Managing the Holistic Risks in Nested Third-Party Payment Processing

Nested third-party payment processing within the ACH Network introduces layers of complexity that can obscure risk exposure and accountability. As financial institutions and payment processors increasingly rely on multiple intermediaries, understanding and managing these holistic risks becomes critical to maintaining compliance, security, and operational integrity. This session will explore the unique challenges posed by nested relationships, including transparency gaps, regulatory obligations, and potential vulnerabilities that can lead to fraud or systemic failures. Attendees will gain insights into best practices for identifying risk across the entire processing chain, implementing robust oversight frameworks, and leveraging technology and governance strategies to mitigate threats. By addressing these issues proactively, organizations can strengthen trust, reduce liability, and ensure the resilience of ACH payment ecosystems in an evolving risk landscape.