Alleged "fraud" is believed to be behind the First National Bank of Lindsay's failure, the second U.S. bank collapse this year. The FDIC’s Deposit Insurance Fund will take a roughly $43 million hit.
The payments processor can undercut rivals on price because it won’t be paying bank fees, industry consultants say.
Customers who are owed will be asked to choose a payment method Nov. 4, with payments beginning “shortly thereafter,” the bank said Saturday.