Thursday , April 19, 2018

Law and Regulation

The Fed Will Leave Its Debit Card Interchange Cap Unchanged for Now

The Federal Reserve Board on Thursday said it would leave its debit card interchange cap for large issuers unchanged despite finding that some of their important expenses either declined last year or had changed little from levels found by an earlier survey. A major retailer trade group said the findings …

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Eye on Litigation: Mitek-USAA Trial Looms; Retailers Appeal to Supreme Court

The spat between Mitek Systems Inc. and USAA Federal Savings Bank over remote deposit capture software is set for trial Sept. 8, but the trial won’t include Mitek’s patent-infringement allegations that had been a key part of the case. In other payments-related legal action, four retail trade groups and two …

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FinCen Director Defends Marijuana Guidelines as Bank Group Urges Congress To Act

Defending the federal government’s guidance for providing financial services to legal marijuana businesses, a senior U.S. Treasury Department official on Tuesday said more than 100 banks and credit unions are now working with cannabis-industry customers. One consultant who connects banks with marijuana merchants confirms that financial-institution interest in the budding …

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The CFPB Warns About the ‘Wild West’ of Virtual Currencies

Already eyed with suspicion by various arms of the federal government and states, virtual currencies now are the subject of a warning issued Monday by the federal Consumer Financial Protection Bureau. The CFPB released a six-page advisory about the risks consumers face when using new forms of electronic money. “Virtual …

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Continuing a Consolidation Trend, Four Southern ACH Associations Will Merge Jan. 1

Four regional automated clearing house associations in the South will merge Jan. 1 under the name of PaymentsFirst Inc. The merger may be the biggest one yet among regional ACH associations in terms of participants and furthers the long-standing trend of smaller, mostly state-based ACH organizations pooling their resources as …

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Durbin Routing Rules Should Apply to ATMs, ATMIA Urges in Meeting with Fed

The ATM Industry Association met today with members of the Federal Reserve staff to discuss making ATM debit transactions subject to the routing requirements of the Durbin Amendment to the 2010 Dodd-Frank Act. The association, which represents ATM independent sales organizations and other retail deployers, wants the provision because it …

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Federal Officials Tell Their Side of the Operation Choke Point Story

They came in for more bashing at a House subcommittee hearing Tuesday, but several federal government officials at least got a chance to give their opinions about the controversial Operation Choke Point, an effort by the U.S. Department of Justice supported by bank regulators that aims to cut off access …

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Countering Operation Choke Point, Acquirers Canceled 10,000 Fraudulent Merchants

Seeking to contrast the merchant-acquiring industry’s actual practices with the impression created by the government’s Operation Choke Point that acquirers turn a blind eye to shady merchants, the industry’s leading trade group on Monday said its members last year discharged more than 10,000 merchants for fraud. That statistic comes from …

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Cash Will Be the King of Washington State Pot Payments, at Least for a While

Like their brethren in Colorado, the new marijuana stores in the state of Washington will be operating mostly on a cash basis, but operators hope that the federal government eventually will remove obstacles preventing them from getting payment card merchant accounts and business checking accounts. On Monday, the Washington State …

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Bill Would Put a Chokehold on the Justice Department’s Operation Choke Point

The U.S. Department of Justice’s controversial Operation Choke Point, an effort to cut off high-risk merchants’ access to electronic payments by challenging the banks and processors that serve them, continues to draw fire. The latest missile comes in the form of a bill from U.S. Rep. Blaine Luetkemeyer, R-Mo., who …

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