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- The Consumer Financial Protection Bureau finalized a rule that caps late fees on credit card payments to $8, down from a typical $32. The rule goes into effect 60 days following its publication in the Federal Register. Other provisions include ending automatic annual inflation adjustment on the fee and requiring larger card issuers to prove their necessity for charging a higher fee to cover actual collection costs. The rule defines larger issuers as those with 1 million or more open credit card accounts. While the Independent Community Bankers of America association was encouraged community banks were exempt, it was concerned about potential unintended consequences. “The CFPB’s rule sends the wrong message that punctual credit card payments are not a significant priority, which could result in consumers making more late payments and incurring additional interest charges that would harm them in the long term,” Rebecca Romero Rainey, ICBA president and chief executive, said in a statement. “Credit card late fees—which are clearly disclosed—deter late payments and help offset the significant costs of collection for issuers. Generally, late fees are used by businesses—and by federal and state governments—to encourage timely payment.”
- PayJunction launched a free browser extension it says can be added within minutes to merchant software to enable surcharges up to 3% on credit card transactions.
- The U.S. banking company J.P. Morgan & Co. said it has been approved as a principal member of Cartes Bancaires CB, the French payments network. The move will allow the bank, which is part of the banking giant JPMorgan Chase & Co., to offer merchants access to Cartes Bancaires by the end of the year. Cartes Bancaires reported 76 million cards in circulation as of the end of 2022.
- Cryptocurrency platform Alchemy Pay received a money-transmitter license in New Hampshire, its third such state license following grants by Arkansas and Iowa.
- Visa Inc. is working with Fundica, a search engine for businesses seeking sources of government funding, to ease funding for small businesses.
- FIS Inc. said it is accepting applications for its Fintech Accelerator 2024 program that will see up to 10 fintech startups participate in a two-week incubation and a 12-week program.
- Payments provider PayNearMe Inc. released its Smart Switch service that provides card processing redundancy with a single integration and single contract.
- Visa Inc. and The Western Union Co. announced a 7-year agreement that will enable Western Union customers to send funds to eligible Visa cards and bank accounts in 40 countries using Visa Direct, the card brand’s real-time payment tool.
- In related news, Visa appointed Michiel Wielhouwer president and country manager for Visa Canada, succeeding Stacey Madge, who had served in the role for seven years. Wielhouwer was previously the executive director of Visa’s France, Belgium, and Luxembourg business.
- Spreedly, a payments-orchestration platform, appointed Peter Dougherty president. Dougherty arrives at the company from Lightspeed Commerce.
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