Federal banking agencies are proposing a more tailored approach to third-party risk management. That doesn't make vendor oversight easier. It makes understanding the actual risk of each relationship more important.

Nuvei and Humboldt Merchant Services faced FTC actions only four days apart. The details are different, but the message to processors, PayFacs, sponsor banks, and fintechs is similar: merchant underwriting and monitoring are becoming an enforcement issue, not just an operational one.