Payments

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After discussing the core features of the U.S. payments systems, we look at how those features have impacted the experience of U.S. business and consumers and why Professor Awrey believes they have resulted in a payments system that is worse, more expensive, and slower than payments systems in other large, developed countries. … Continue Reading

The Wall Street Journal has reported that the seven large banks that own Zelle are discussing possible approaches to fraudulent transactions on the Zelle network.  According to the WSJ, the Zelle network rules under consideration would establish network-wide guarantees to reimburse scam victims and create liability sharing agreements, which could go live as soon as January 1, 2023. … Continue Reading

The CFPB has announced that it will be reopening the comment period on its November 2021 request for public comments to inform its inquiry into large technology companies that offer payment services.  In October 2021, the CFPB sent orders to six large technology platforms offering payment services that directed them to provide information to the Bureau about their payments products and services and their collection and use of personal payments data.… Continue Reading

I am pleased to share with our blog readers that Kristen Larson, an attorney with almost two decades of in-house experience advising midsized and large national banks on financial services matters, has joined Ballard Spahr’s Consumer Financial Services Group.  She is resident in the firm’s Minneapolis office.

Kristen’s practice involves consumer, small business, and treasury management products and services; digital banking; emerging payments; servicing; innovative technology; information security; operations; marketing; and complex service contracts.… Continue Reading

Earlier this week, the Federal Reserve Board of Governors narrowed the timetable for the launch of its instant payments platform—FedNow—to mid-year 2023, specifically targeting a production rollout of the service in a May to July 2023 timeframe.  The Fed had previously communicated a 2023 launch.  In September 2022, the FedNow Pilot Program will begin technical testing for the service.… Continue Reading

In Director Chopra’s recent interviews with several news reporting organizations, a persistent theme was the CFPB’s concerns about the entry of big tech companies into financial services, particularly in connection with payments and the companies’ ability to collect and monetize data about consumers.  Those concerns are the focus of a new CFPB report issued last week titled “The Convergence of Payments and Commerce: Implications for Consumers.”… Continue Reading

CFPB Deputy Director Zixta Martinez recently provided the opening remarks at the CFPB’s Academic Research Council meeting.  In her remarks, Martinez emphasized the CFPB’s role as a data-driven agency and welcomed further discussion of state payday extended payment plans and of the inclusion of medical debt in credit reports—two topics that have garnered renewed public interest due to the COVID-19 pandemic.… Continue Reading

At the end of last month, the CFPB sent orders to six large technology platforms offering payment services that directs them to provide information to the Bureau about their payments products and services and their collection and use of personal payments data.

On November 5, 2021, the CFPB published a notice in the Federal Register seeking public comments to inform its inquiry. … Continue Reading

CFPB Director Rohit Chopra has wasted no time in acting on comments he made at his confirmation hearing regarding the risks posed by the collection of data by large platforms.  In just his first full week as CFPB Director, the CFPB sent orders to six technology platforms offering payment services directing them to provide information to the Bureau. … Continue Reading

In this podcast we cover upcoming changes to the Nacha Operating Rules as part of the Meaningful Modernization rule which takes effect September 17, 2021. We discuss the payments environment leading to the changes, new disclosures for consumer ACH authorizations, use cases and requirements for Standing Authorizations and changes for Oral Authorizations.… Continue Reading