After discussing what real-time payments are and how they differ from fast payments, we look at the benefits of RTPs and potential for fraud, issues arising from the Fed’s plans to launch a RTP service, the laws and rules applicable to RTPs and how they bear on loss allocation, the pandemic’s effect on RTPs, and our expectations for the use of RTPs and the impact on fast payments generally.… Continue Reading
payments
Fed announces details of real-time settlement service to support instant payments
By Ballard CFS Group on
The Federal Reserve Board recently issued a Service Announcement setting forth the details of its FedNow Service, a new 24x7x365 interbank settlement service with clearing functionality to support instant payments in the United States.
The Fed announced its decision to develop the FedNow Service in a notice and request for comment issued in August 2019. … Continue Reading
This week’s podcast: A first look at the plans of the Office of the Comptroller of the Currency for a national payments charter
By Barbara S. Mishkin on
Acting Comptroller Brooks recently revealed the OCC’s plans to create a national payments charter for payment processing companies. After discussing the new charter’s intended purpose and benefits, we look at the OCC’s planned two-phase roll-out, how a payments charter would differ from the OCC’s fintech charter, other charter options for non-bank payment processors, and possible legal challenges.… Continue Reading
OCC payments charter quickly generates industry concern
By Scott A. Coleman & Mindy Harris on
As we reported, Acting Comptroller of the Currency Brian Brooks has previewed the OCC’s plans to introduce another special purpose national bank charter that would give payment companies a nationwide servicing platform and federal preemption of state laws regarding licensing and regulation of money transmitters and payment services providers. Acting Comptroller Brooks’ statements drew swift reaction in the form of a July 29, 2020 letter from seven leading banking trade associations.… Continue Reading
Senate Banking Committee to hold June 30 hearing on digitization of money and payments
By Barbara S. Mishkin on
Posted in Payments, Regulatory and Enforcement
The Senate Banking Committee will hold a hearing tomorrow, June 30, titled, “The Digitization of Money and Payments.”
The witnesses will include Charles Cascarilla, Chief Executive Officer and Co-Founder, Paxos, and Professor Nakita Q. Cuttino, Visiting Assistant Professor of Law, Duke University School of Law.
This week’s podcast: A discussion of alternative payments
By Barbara S. Mishkin on
Posted in Payments, Regulatory and Enforcement
In this podcast, we examine the features of different forms of alternative payments, factors driving consumer demand, contractual and other issues in business transactions involving such payments, including the role of gateways and payment aggregators.
Click here to listen to the podcast.… Continue Reading
House Financial Services Committee to hold Sept. 26 hearing on real-time payments
By Alan S. Kaplinsky on
Posted in Payments, Regulatory and Enforcement
The House Financial Services Committee’s Task Force on Financial Technology will hold a hearing entitled “The Future of Real-Time Payments,” at 2:00 p.m. on Thursday, September 26, 2019. There will be a live webcast of the hearing.
The memo from the FSC Majority Staff indicates the hearing will focus on the development of a real-time payments (“RTP”) system and the risks, regulation, and market features of any future payments system.… Continue Reading
The Fed’s entry into real-time payments: commercial and contractual implications
By Barbara S. Mishkin on
Last month, the Federal Reserve Board announced its plans to develop a real-time payments (RTP) service to be offered by the Federal Reserve Banks to directly support faster payments.
Three members of Ballard Spahr’s Consumer Financial Services Group with extensive experience negotiating complex payments transactions for some of the world’s largest retailers and financial institutions have authored an article in which they discuss the expanding adoption of RTP as a standard for payments transactions, including the commercial and contractual issues that may arise as a result.… Continue Reading
Fed announces plans to develop real-time settlement service to support faster payments
By Barbara S. Mishkin on
The Federal Reserve Board has determined that the Federal Reserve should take the following two actions:
- Develop a new interbank 24x7x365 real-time gross settlement (RTGS) service to be offered by the Federal Reserve Banks to directly support faster payments and to be called the FedNow Service
- Explore expanding the hours of the Fedwire Funds Service and the National Settlement Service (NSS), up to 24x7x365 to support liquidity management in private-sector RTGS services for faster payments
The Fed’s determination is set forth in a notice and request for comment issued on August 5, with comments to be due on or before 90 days after the date the notice is published in the Federal Register. … Continue Reading
Experienced payments attorney Judy Mok joins Ballard Spahr’s CFS Group
By Alan S. Kaplinsky on
Posted in Fintech, Regulatory and Enforcement
I am pleased to announce that Judy Mok, an attorney with extensive experience negotiating complex payments transactions for some of the world’s largest retailers and financial institutions, has joined Ballard Spahr as Of Counsel in the firm’s Consumer Financial Services Group. She will be based in the firm’s New York office.… Continue Reading