Archives: Payments

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Ninth Circuit Strikes Down Ban on Retailers’ Credit Card Surcharges

On January 3, 2018, in Italian Colors Restaurant v. Becerra, No. 15-15873, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit invalidated an application of a California law that would prohibit merchants from imposing a surcharge on credit card payments. The California law would allow offering discounts for payments by other … Continue Reading

CFPB Releases Credit Card Report

On December 27, 2017, the CFPB released its biennial report on the state of the credit card market. The CFPB’s report found the market to be stable and growing steadily. In particular, the Bureau found that the cost of credit card credit to consumers remains stable overall, in terms of both total costs and the … Continue Reading

Federal Reserve Eliminates SOSA Rating and Proposes New Standards for FBO Daylight Overdraft Capacity

On December 7, 2017, the Federal Reserve announced that it will eliminate the use of the Strength of Support Assessment (or “SOSA” rating) as a supervisory tool.  The SOSA rating measures the extent to which a foreign banking organization (“FBO”) is in a position to provide support to its U.S. branches, agencies, and subsidiary banks, … Continue Reading

Federal Reserve Updates Strategies and Tactics for Promoting Payment System Improvements

On September 6, 2017, the Federal Reserve System (“FRS”) published a paper that identifies updated strategies and tactics for improving the U.S. payments system. The paper, entitled Strategies for Improving the U.S. Payment System: Federal Reserve Next Steps in the Payments Improvement Journey, refines the strategies set forth in a previous FRS paper, Strategies for … Continue Reading

The OCC Rejects Operation Chokepoint in Letter to Chairman Hensarling

On August 21, 2017, Keith Noreika, the Acting Comptroller of the Currency, sent a letter to Jeb Hensarling, the Chairman of the House Financial Services Committee, stating that the Office of the Comptroller of the Currency (“OCC”) is not, and never was, a part of Operation Chokepoint, and that Operation Chokepoint is not the policy … Continue Reading

Blueprint for the Future of UK Payments: The Payments Strategy Forum Launches a Consultation on the Future of UK Payments

The Payment Strategy Forum (PSF) has published a public Consultation Paper (the “Consultation”) entitled “Blueprint for the Future of UK Payments.”  The PSF observes that whilst payment systems in UK are some of the best in the world, they are no longer fit for purpose, given their age and complexity.  The PSF has therefore developed … Continue Reading

CFPB Complaint Against Intercept Corporation is Dismissed for Failure to State a Claim

On March 17, 2017, the U.S. District Court for the Eastern District of North Dakota dismissed without prejudice the CFPB’s complaint against third-party payment processor Intercept Corporation and two of its executives for failure to state a claim. The CFPB’s June 2016 complaint alleged that defendants had violated the Consumer Financial Protection Act (the “CFPA”) … Continue Reading

Financial Stability Board Publishes 2017 Roadmap for Correspondent Banking

On December 19, 2016, the Financial Stability Board (“FSB”) issued its end-of-2016 progress report regarding its action plan to assess and address the decline in correspondent banking. The report sets out a roadmap the FSB intends to follow in 2017 in response to the decline of correspondent banking, a critical part of the global payments … Continue Reading

Federal Reserve Board Releases Research Paper on Digital Ledger Technology

The Federal Reserve Board released a staff research paper on Monday, December 5, 2016, addressing the potential use of distributed ledger technology (DLT) in payments, clearing, and settlement (PCS) processes.  A distributed ledger is a type of database in which identical copies of information are distributed and maintained among multiple parties or multiple nodes in … Continue Reading

CFPB Proposed Confidentiality Rule Revisions Prompt Comments and Criticism

On August 24, 2016, the Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rule Making that proposed amendments to the CFPB’s Freedom of Information Act (FOIA), confidentiality rules, and Privacy Act regulations codified at 12 C.F.R. Part 1070.  The proposed changes to the confidentiality rules include, but are not limited to:  (i)  allowing … Continue Reading

FinCEN Issues Advisory on Suspicious Activity Reporting Requirements for Cyber-attacks Under the Bank Secrecy Act

On October 25, 2016, the Financial Crimes Enforcement Network (FinCEN) issued an Advisory to financial institutions to (i) clarify reporting requirements under the Bank Secrecy Act (BSA) for filing Suspicious Activity Reports (SARs) on cyber-attacks and cyber-enabled crimes, (ii) note what information financial institutions should include in such reports, and (iii) encourage financial institutions to share … Continue Reading

CFPB’s Monthly Complaint Report Focuses on Prepaid Account Complaints

On October 25, 2016, the Consumer Financial Protection Bureau (CFPB) released its monthly complaint report.  For the month of September 2016, the products and services receiving the most complaints were debt collection, credit reporting, and mortgages.  These three topics collectively represented almost two-thirds of the complaints submitted.  Notably, debt collection complaints declined by 24 percent and … Continue Reading

CFPB Issues Final Prepaid Accounts Rule

On October 5, 2016, the CFPB issued its long-awaited final prepaid accounts rule. The rule applies to traditional prepaid cards, such as general-purpose reloadable cards, as well as a variety of other products, including mobile wallets, person-to-person payment products, payroll cards, student financial aid disbursement cards, tax refund cards, and certain government benefits cards, such … Continue Reading

Governor Brainard’s Speech on Distributed Ledger Technology

Earlier today, Federal Reserve Governor Lael Brainard gave a speech at the annual meeting of the Institute of International Finance on distributed ledger technology.  She noted that the Federal Reserve has created a working group to conduct a 360-degree analysis of financial innovation, including the impact that distributed ledger technologies may have on payment, clearing, … Continue Reading
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