Electronic Payments

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The current economic slowdown can affect credit card processing agreements between companies and payment processors. It is an issue relevant to all companies that accept or process credit cards as a method of payment. The following update analyzes financial risks that companies (merchants) and payment processors face under their processing agreements during a slowdown, and …

Weekly Fintech Focus

  • Bank regulators issue long-awaited guidance on offering small-dollar, short-term loans.
  • CFPB issues small-dollar lending no-action letter template.
  • CFPB provides guidance to people receiving pandemic relief on prepaid cards.
  • FinCEN issues guidance on COVID-19-related financial crimes.
  • Plaid announces the launch of a bank API development program to give banks, especially small banks, control over account data sharing with fintechs.
  • Libra Association hires former FinCEN director to be its general counsel.
  • FIS survey documents change in consumer banking behaviors from COVID-19.
  • Cashwire and Workday team up for automatic wire transfers.

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Continue Reading Fintech Week in Review: Week of May 22, 2020

Weekly Fintech Focus

  • House Democrats latest relief bill includes protections for financial institutions working with marijuana-related businesses.
  • The CFPB issues guidance providing flexibility for financial institutions dealing with billing error disputes and making changes to consumer accounts to respond to the challenges of the COVID-19 pandemic.
  • The CFPB amends the Remittance Transfer Rule to permanently allow estimates of exchange rates and third-party fees.
  • FinCEN is seeking comments about the burden of collecting, filing, and maintaining CTRs.
  • U.S. credit card spending falls 40% in March and early April.
  • Contactless payments are more likely to be used.

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Continue Reading Fintech Week in Review: Week of May 15, 2020

Weekly Fintech Focus

  • The CFPB emphasizes flexibility under ECOA for using AI models to make credit decisions.
  • The CFPB issues FAQs to clarify aspects of a creditor’s responsibility to provide adverse action notices to PPP loan applicants.
  • FATF provides recommendations for countries dealing with new money laundering risks as a result of COVID-19.
  • CFPB report shows substantial decline in monthly consumer credit applications.
  • Visa leads latest investment in Nium.
  • Visa’s Fast Track Program is growing.
  • Shopify and Pinterest launch new channel.

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Continue Reading Fintech Week in Review: Week of May 8, 2020

Weekly Fintech Focus

  • The FFIEC issued new guidance to financial institutions with recommendations for effective risk management strategies when using cloud computing services.
  • The GAO is encouraging bank regulators to continue focusing on addressing important fintech issues, including issuing guidance about data aggregation, alternative data use, and de-risking.
  • CFPB announces new interactive database for consumer complaints.
  • Treasury partners with payments companies to deliver COVID-19 relief funds on prepaid debit cards.
  • Galileo pairs up with Klar and becomes first API software integrator to achieve Mastercard certification.

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Continue Reading Fintech Week in Review: Week of May 1, 2020

Weekly Fintech Focus

  • FFIEC updates the BSA/AML Examination Manual.
  • FFIEC releases APR and APY computational tools.
  • State AGs request CFPB Director to withdraw COVID‑19 credit reporting guidance.
  • RevenueWire settles FTC charges for $6.75 million.
  • Delaware check seller and money transmitter license required to transition to NMLS.
  • SBA releases PPP Loan FAQ for borrowers and lenders.
  • The Fed removes savings deposit account withdrawal restrictions.

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Continue Reading Fintech Week in Review: Week of April 24, 2020

Weekly Fintech Focus

  • The CFPB intends to provide flexibility in its supervisory and enforcement activities related to parts of the Remittance Transfer Rule in response to COVID‑19.
  • The CFPB provides an interpretive rule that paves the way for the government to distribute impact relief payments via prepaid card.
  • The FTC publishes a blog post on consumer protection issues related to AI models and algorithms, reiterating the FTC’s focus on fairness and explainability.
  • FinCEN re-publishes a FAQ for customer due diligence for PPP loans.
  • Fintech lenders approved to provide PPP loans.
  • S. warns of North Korea cyber threat to financial industry.
  • Stripe raises $600 million at a valuation of $36 billion.

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Continue Reading Fintech Week in Review: Week of April 17, 2020

Weekly Fintech Focus

  • BIS provides additional guidance to central banks to encourage flexibility in responding to COVID‑19 challenges.
  • SoFi buys Galileo for $1.2 billion.
  • Visa and Fold co-brand a debit card that offers Bitcoin rewards.
  • Card networks are delaying planned interchange fee changes in light of COVID‑19 challenges.
  • Sweden joins the ECB instant payments platform.

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Continue Reading Fintech Week in Review: Week of April 10, 2020

Weekly Fintech Focus

  • The CARES Act rollout provides numerous avenues of financial relief through injections of liquidity and new lending opportunities.
  • The CFPB Taskforce on Federal Consumer Financial Law seeks comments on many aspects of consumer financial law and protection, including a focus on fintech solutions.
  • The BIS issues a publication outlining the challenges of cash payments in the age of coronavirus.
  • Microsoft and Plaid announce a new personal finance function through Excel that leverages Plaid’s integration with financial accounts.
  • FinCEN provides financial institutions with more information in response to COVID‑19.

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Continue Reading Fintech Week in Review: Week of April 3, 2020

Weekly Fintech Focus

  • Federal financial regulators for banks and non-banks reduce supervisory burdens and encourage covered entities to work with consumers that are affected by COVID-19
  • Regulators encourage contactless payment innovations to work towards sanitary payments in stores.
  • FinCEN issues an advisory on FATF-identified jurisdictions with AML/CFT deficiencies.
  • Goldman Sachs and Morgan Stanley are approved for majority stakes in China ventures.
  • Russian Prime Minister introduces a bill to allow fintech sandboxes.

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Continue Reading Fintech Week in Review: Week of March 27, 2020