A newly formed group called the Third Party Payment Processors Association (TPPPA) plans to advocate for third-party payment processors, as well as for partner financial institutions and the merchants and consumers that use their services.
The founding members formed the group in response to recent actions by regulators and law enforcement agencies aimed at "eliminating payments deemed to be objectionable," the association said in an August 22 press release.
"When payment processors are targeted in an effort to shut down a class of payment or an industry, the entire payments system is put at risk. It is impossible to discriminate against a single class of payments without hurting the entire industry," said Marsha Jones, director of the TPPPA, in a press release.
The TPPPA did not name its founding members, nor did it identify the government actions referenced in its release when initially contacted by PaymentsSource on August 22.
The Justice Department has recently targeted banks and processors as part of its pursuit of online payday lenders.