On November 15, 2024, the Federal Trade Commission (FTC) published its final “Rule Concerning Recurring Subscriptions and Other Negative Option Programs” (the “Rule”), part of which includes what the FTC refers to as the “Click to Cancel” rule. This far-reaching
Latest from Paytech & Payment Systems Insights
Open Banking: Final Personal Financial Data Rights Rule
On October 22, 2024, the Consumer Financial Protection Bureau (CFPB) finalized its long-awaited rule on Personal Financial Data Rights (referred to herein as the “Open Banking Rule”).
The Open Banking Rule requires banks, credit unions, and other financial service providers
Avoid the Pitfalls of ACH Fraud: Embracing Nacha’s New Risk Management Topics
Fraud in the payments space is nothing new. In fact, it is fairly pervasive across the (now numerous) available payment systems. And despite the clear benefits of faster payments, the advent of faster, more easily accessible methods of payment has
What is the Future of FBO Accounts?
For years, “FBO” has been one the payments industry’s favorite buzz words. The FBO account structure has been a common “best practice” by payments providers seeking to remove themselves from the flow of funds to reduce their risk of being
Sweeping Changes to Surcharging Practices in New York
This week, New York’s new surcharging law went into effect, replacing the prior surcharge ban which had been attacked at the U.S. Supreme Court (as discussed here). The old law was simply a wholesale ban on credit card surcharges,
Third-Party Senders: Are you a Money Transmitter?
As a corporation that handles ACH transactions on behalf of others, you may have heard your financial institution refer to you as a “Third-Party Sender.” Common examples of Third-Party Senders include payroll processing companies, rent payment companies, and other bill
New Joint Regulatory FAQs Regarding Suspicious Activity Reporting and other AML Considerations
On January 19, 2021, several federal banking regulators including FinCEN, the Federal Reserve, the FDIC, NCUA, and the OCC jointly issued answers to several frequently asked questions (FAQs) regarding suspicious activity reports (SARs) and other anti-money laundering (AML) considerations for
Payment Processing Contracts and COVID-19
The commercial slowdown wrought by the global pandemic COVID-19 has left many in the payments industry wondering how the virus will affect their existing processing agreements. Depending on which side of an agreement you are on, you may be worried
Card Brand Guidance for Managing COVID-19 Related Chargebacks
In light of the significant increase in chargebacks resulting from COVID-19, Visa, Mastercard and American Express recently issued guidance to assist acquirers, issuers, and merchants in navigating the dispute process. Below is a summary of that guidance. Visa On March
Legal Impacts of COVID-19 on the Payments Industry
The Taft Paytech & Payment Systems team has prepared the following tips for ISOs, processors, payment facilitators, ISVs, money services businesses, and banks in light of COVID-19 developments.
- Review Termination Rights and Implications. Contracts often include a force majeure clause