Tuesday , July 17, 2018

Law and Regulation

Picture Clouded on Durbin’s Results for Retailers And Consumers, Study Says

  One full year after complete implementation of the controversial Durbin Amendment’s debit card regulations, the impact on both merchants and consumers—the law’s putative beneficiaries—remains mixed, according to a study released by the Federal Reserve Bank of Kansas City. While Durbin drastically reduced interchange for the country’s largest banks while …

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Smaller Debit Issuers, Exempt from Durbin Caps, Still Feel Pricing Impact, Expert Says

  The provisions of the Durbin Amendment to the 2010 Dodd-Frank Act are starting to hurt smaller issuers’ debit card income even though these financial institutions are explicitly exempted from the law’s cap on interchange rates, according to a debit expert. “This phenomenon is happening as we speak,” said Tony …

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Judge Tells Retailer Groups To Settle Their Online Feud Arising From Interchange Settlement

  In one of the stranger twists arising from the controversial settlement to credit card interchange litigation, the federal judge overseeing the massive case on Thursday gave lawyers for two feuding merchant groups a week to propose changes to a Web site that urges merchants to opt out of the …

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Retailer Genesco Sues Visa To Recover $13 Million in Disputed PCI Fines

  Sports apparel and accessories retailer Genesco Inc. has gone to court to challenge  $13.3 million in fines levied by Visa Inc. for alleged violations of the Payment Card Industry data-security standard. Genesco’s may be the first retailer lawsuit filed against a card network over the PCI security standards, according …

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EFT Networks and Discover Strike a Deal That Could Resolve a Chip Card Controversy

  With help from Discover Financial Services, regional electronic funds transfer networks this week took a major step toward ending a dilemma over how merchants can route PIN-debit transactions made on chip cards through EFT networks and still meet the Durbin Amendment’s transaction-routing requirements. Previously, the main routes available for …

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The FTC Warns of Fraud and Consumer Privacy Issues as Mobile Payments Gain Traction

The Federal Trade Commission is becoming concerned that consumers who use the many emerging mobile-payments services won’t always be protected from fraud and privacy violations. In a staff report released this week entitled “Paper, Plastic or Mobile? An FTC Workshop on Mobile Payments,” the FTC lists a series of recommendations …

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With No Argo-Style Rescue Coming, Bergeron Calls It Quits at VeriFone

  Dogged by seemingly unrelenting bad news that now includes possible violations of U.S. sanctions against Iran, leading point-of-sale terminal maker VeriFone Systems Inc. late Monday said its long-time chief executive officer Douglas G. Bergeron “is stepping down,” effective today. The company named its chairman, Richard McGinn, as interim chief …

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The Fed Takes a Pass on Proposing Changes to Its Durbin Debit Card Regs

The Federal Reserve Board on Tuesday released another report on debit card revenues and expenses and says it does not plan to propose changes to its controversial debit regulations implementing the Durbin Amendment in 2010’s Dodd-Frank Act. Dodd-Frank requires the Fed to report on the debit card market every two …

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Illinois Cites Square and NetSpend for Not Having Money-Transmitter Licenses

A spate of cease-and-desist orders by the state of Illinois against unlicensed money transmitters has ensnared eight payments companies, including such prominent ones as Square Inc. and NetSpending Holdings Inc. An agency quietly issued orders against both firms in January that seemingly would prevent them from doing business in the …

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PCI Council Releases Mobile-Acceptance Guidance, But No Word on Certification of Apps

  The PCI Security Standards Council on Thursday released yet another set of data-protection guidelines for mobile payments, this one aimed at merchants using smart phones and tablet computers to accept credit and debit cards. Although it touches on many points, the guidance especially focuses on the software running on …

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