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FDIC

The FDIC focuses on safety and consumer protection. This is possible through examination and supervision of financial institutions.

Federal Deposit Insurance Corporation protects the money stored in banks and any transactions processing through said banks.

Federal Deposit Insurance Corporation

Thanks to the FFIEC, federally registered banks are not allowed to process transactions if they are not FDIC compliant. Started in 1933 to maintain confidence for the American banking system, the FDIC how has over 5,000 banks and savings institutes.

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Safety and Consumer Protection

The FDIC focuses on safety and consumer protection. This is possible through examination and supervision of financial institutions.

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Consumer Protection with the FDIC

The FDIC protects consumers with overdraft awareness, making it so banks cannot charge overdraft fees without opting into and agreeing to the service. While most banks will not allow you to open account without agreeing to this, the rule makes it clear to consumers, the types of activity that will be subject to overdraft fees.

FDIC, cybersecurity,

Compliance and
Protection

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While credit card companies may choose to cover 100% of card theft or 0%, the FDIC strictly limits the fees a consumer is responsible for in the event of a lost or stollen debit card. For any lost card reported within 2 days the consumer is only responsible for $50 of fraudulent charges, whereas if not reported within 2 days, the FDIC still limits the consumer responsibility to only $500 regardless of how much has been charged to the account.

Understanding what the FDIC does, its responsibilities and how it protects consumers is the first step in implementing an effective and compliant system.

While credit card companies may choose to cover 100% of card theft or 0%, the strictly limits the fees a consumer is responsible for in the event of a lost or stollen debit card. For any lost card reported within 2 days the consumer is only responsible for $50 of fraudulent charges, whereas if not reported within 2 days, the still limits the consumer responsibility to only $500 regardless of how much has been charged to the account.

The key to protecting consumer money within the bank is through cybersecurity. Physical cards get lost, but quick resolution through electronic means of freezing and account and limits all access points to the money until the lost or stollen data can be addressed is key to limiting the impact of an event.

Protect your money. Protect the money of your consumers. No matter who’s money you are protecting, getting it right the first time saves everyone grief along the way. Quick response and thorough review of all means of access to consumer money will ensure compliance and protection.