Electronic payment systems are a means of facilitating transactions over an electronic network, such as a credit union’s internal network or the internet. There are many types of EPS available to credit unions.
Credit unions are increasingly reliant on electronic payment systems to convey important financial transactions for members (for example, mortgage payments and payroll direct deposits), so it is important that these systems are secure and reliable.
The volume and amount of these transactions (for example, via debit cards, ATMs, wire transfers, and the ACH) can be large, and, in some cases, the transfers of funds are immediate and irrevocable. The NCUA seeks to ensure that the controls around these critical functions are sufficient and comprehensive to protect the credit union’s safety and soundness and prevent fraudulent activity.
EPS is used to move money. A safe and reliable system to move money is essential in today’s economy. Because EPS moves money, they are under constant threat of attack, both internally and externally. The NCUA examines EPS to ensure credit unions are conducting business in a safe and sound manner to protect themselves, their members, and the Share Insurance Fund.
This section of the Examiner's Guide includes the following information:
- Types of EPS
- Impact on financial position
- Primary risks
- Risk mitigation
- Review procedures
- Workpapers & Resources
Last updated September 25, 2017
