Payment Law Advisor

Legal Commentary and Resources for the Payment Industry

In an American economy driven by Silicon Valley, where Americans pay more than half of their bills online, and millennials have taken to online social platforms like Venmo to split the bill for dinner, cash continues to represent nearly a third of transactions in the United States. In fact, though you wouldn’t know it from the ubiquitous swiveling iPads at your local coffee shop, cash is the most frequent method of payment in the US…
On January 24, 2019, Judge Margo K. Brodie of the U.S. District Court for the Eastern District of New York granted preliminary approval of Visa and Mastercard’s second attempt to settle the 13-year old antitrust litigation brought by approximately 12 million merchants, alleging that Visa, Mastercard, and several issuing and acquiring banks conspired to fix artificially high interchange fees in violation of the Sherman Act. The settlement of between $5.56 billion and $6.26 billion, which…
On November 15, 2018, the Board of Governors of the Federal Reserve System (Board) published in the Federal Register its request for public comment on potential actions the Federal Reserve could take to “promote ubiquitous, safe, and efficient faster payments in the United States by facilitating real-time interbank settlement of faster payments” (Notice). The comment period closed on December 14, 2018. More than 400 comments and form letters were submitted in response to the Notice.…
On December 27, 2018, Thomson Reuters published a new Consumer Financial Services Law Report, which highlights significant caselaw and emerging trends. Their latest report features an article written by a few of our payments members: Bradford Hardin, Jonathan Engel, and Juliana Gerrick, titled “States Diverge from Federal Regulators on Disparate Impact.” To read the full article, click here.…
FinTech appears to be the next industry set to benefit from the Trump administration’s ongoing deregulatory push. The Bureau of Consumer Financial Protection’s (“Bureau”) long-gestating update to the Obama era no-action letter policy was announced as one of the final acts of outgoing Acting Director Mick Mulvaney. Though no-action letter policies and product sandboxes (jurisdictions where new business models may be tested with decreased regulatory oversight) have existed for some time in concept and in…
Earlier this month, the Federal Deposit Insurance Corporation (FDIC) published a Request for Information (RFI) seeking public comment on issues related to small-dollar lending by FDIC-supervised financial institutions. Specifically, the RFI solicits comments about “consumer demand for small-dollar credit products, the supply of small-dollar credit products currently offered by banks, and whether there are steps the FDIC could take to better enable banks to provide such products to consumers to meet demand.” Comments responsive to…
On November 6, 2018, DWT’s Project W hosted the third FinTech Women event of the year, featuring a panel discussion titled “State of the FinTech Ecosystem: the FI Perspective.” The panelists represented a wide cross-section of financial institutions engaged in the FinTech ecosystem, including a large national bank, a growing community bank and one of the largest credit unions in the country. Panelists included: Julie Pukas, Head of Commercial Product Integration and Merchant Solutions, TD…
On Thursday, November 8, DWT FinTech team co-leader Andy Lorentz took part in the Commerce.Innovated Class 8 Demo Day in New York City. Andy led a discussion on legal developments in FinTech, with a focus on federal regulatory rollbacks, an update on federal enforcement activities, a discussion of the regulatory environment at the state level, and an overview of multiple FinTech innovation initiatives. To view the presentation materials, please click here.  …
On September 10, 2018, the Bureau of Consumer Financial Protection (the “Bureau”) published a notice of proposed policy guidance to create a “Disclosure Sandbox.” The proposed policy to provide a Disclosure Sandbox would be designed to allow a covered person to apply for a “trial disclosure program waiver” that, generally speaking, would allow the person to test a new type of a required disclosure or a new method of delivering the disclosure while the Bureau…