Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Brian J. Hurh

Posts by Brian J. Hurh

DC Circuit Durbin Decision Available on PLA

Posted in Regulatory and Compliance

We have added the DC Circuit Court of Appeals “Durbin” decision to our Regulatory and Compliance Resources page (you can find it here).  The decision overturned a lower court’s ruling that had largely vacated the “Durbin Amendment,” a set of rules adopted by the Federal Reserve in 2011 governing interchange fees and network routing for… Continue Reading

GAO Issues Report On Tax Compliance Issues Regarding Virtual Economies and Currencies

Posted in Regulatory and Compliance, Regulatory Compliance/Federal Agencies Resources

We are updating our resource page to include a May 2013 U.S. GAO report on potential tax compliance issues related to virtual economies and currencies, which followed on the heels of FinCEN’s virtual currency guidance in March 2013 (read our analysis here). The GAO guide recognizes that virtual currencies pose various tax compliance risks, but… Continue Reading

Comment Deadline on Ban of Remotely Created Checks and Payment Orders under FTC Telemarketing Sales Rule Extended to August 8

Posted in Regulatory and Compliance, Regulatory Compliance/Federal Agencies Resources

In May, we highlighted the FTC’s notice of proposed rulemaking that proposed changes to the Telemarketing Sales Rule (TSR) (16 CFR 310). The NPRM included a proposed ban on the use of certain “novel” payment methods in all telemarketing transactions (i.e., both inbound and outbound). The proposed banned payment methods include remotely created checks (RCCs)… Continue Reading

Visa Revises Rules to Permit Discounts on Proprietary, Co-Brand Cards to Foster Its Partnership with Chase

Posted in Deals and Technology, Regulatory and Compliance

We understand that Visa recently revised its rules to permit US issuers and merchants to offer immediate discounts at the point of sale to encourage and reward the use of different types of Visa cards. Visa’s prior rule barred such point-of-sale differentiation among Visa cards. While the rule change could have a broad impact, we… Continue Reading

FTC Order Against Fraudulent Payment Processor Joins Growing List of Regulatory Actions Involving Third Party Service Providers

Posted in Regulatory and Compliance

Following on the heels of significant regulatory actions by the Consumer Financial Protection Bureau, Federal Reserve, and the FDIC against regulated companies and their third-party service providers, the Federal Trade Commission recently announced a settlement order against a payment processor, as well as its principals (including one “John P. Lawless,” no joke). The defendant, Automated… Continue Reading

FTC Releases Long-Awaited Update to its 2000 Dot Com Disclosures Guide

Posted in Regulatory and Compliance

The Federal Trade Commission (“FTC”) has released its revised guidance on the principles of advertising disclosures in the online marketplace.  Entitled “.com Disclosures,” the new guidance enhances the FTC’s earlier Dot Com Disclosures guide, published in May 2000, to address over a decade of technological changes in e-commerce, including the significant increase in the use… Continue Reading

FTC Releases Report on Mobile Payments; Guidance on Addressing Issues in Mobile Carrier Billing, Privacy and Data Security

Posted in Regulatory and Compliance

Earlier this month, the FTC released a Report highlighting some of the key issues in the mobile payments space, with particular focus on mobile carrier billing, privacy and data security, and international payments.  The Report is based on various workshops held by the FTC on mobile technologies, and provides summary guidance on what issues companies… Continue Reading

NACHA Issues Guidelines for Using QR Codes in Bill Pay Services and ACH Payments

Posted in Resource Database

NACHA’s Council for Electronic Billing and Payment recently released a guide on the use of “quick response” codes (or “QR codes”) to facilitate bill pay services, including initiating ACH payments and reviewing accounts. QR codes have been used for a variety of applications, including marketing and advertising, product information and even on-screen payments on television… Continue Reading

Regulatory Action Against First Bank of Delaware Reinforces BSA and AML Concerns with Third-Party Relationships

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance

Earlier this month, First Bank of Delaware[FN1] was subjected to concurrent $15 million penalties by the Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN), along with a $15 million settlement with the Department of Justice (DOJ). The fines and penalties were in settlement of alleged violations of the Bank Secrecy Act… Continue Reading

Consumer Financial Protection Bureau Resources

Posted in Regulatory and Compliance, Resource Database

The Consumer Financial Protection Bureau (CPFB) generally oversees companies that offer consumer financial products and services, including mortgages, student loans, and credit cards.  The CFPB website includes key information for financial services providers, including CFPB advisory bulletins on third-party service providers and credit card add-on products; informational databases for consumer complaints and credit card agreements;… Continue Reading

Federal and State Agencies

Posted in Regulatory and Compliance, Resource Database

Compliance means conforming to the applicable rules and regulations of the various federal regulatory agencies. Our Resources page gives you access to the various agency websites and related information, including the Federal Reserve and its regional banks, MOUs between the CFPB and federal and state agencies, OCC, FDIC, FFIEC, FTC, FinCEN, MTRA and OFAC.

Notes from the NACHA MEGA Meeting in Atlanta

Posted in Regulatory and Compliance

DWT representatives attended the October NACHA MEGA meeting in Atlanta, GA to discuss recent trends in payments and ACH services.  Among the highlights from the conference were: Jan Estep, President and CEO of NACHA, kicked off the events with updates on recent and upcoming NACHA activities. In particular, Ms. Estep announced that the proposal to… Continue Reading

Regulators Emphasize Importance of Money Transmission Laws, Consumer Protection and Other Regulatory Compliance for Mobile and Other Emerging Payment Innovations

Posted in Financial Services Litigation and Enforcement, Privacy and Data Security, Regulatory and Compliance

 At last week’s ACI Emerging Payments Systems conference in Washington, DC, sponsored in part by Davis Wright Tremaine, federal and state regulators and industry participants discussed the myriad legal issues facing innovators and incumbent market participants offering new payment products and services to consumers, including prepaid products, mobile wallets, peer-to-peer (P2P) payments, virtual currencies and… Continue Reading

NACHA Requests Comment on Standardizing P2P Payments Using WEB Code

Posted in Regulatory and Compliance

NACHA has released several concurrent requests for comment (“Requests”) on proposals to amend the NACHA Operating Rules (Rules), including amendments to the Rules regarding “compliance/operational topics” and international ACH transactions. In addition, NACHA has proposed standardizing the Rules to allow for person-to-person (P2P) payments, which should be of particular interest to emerging and mobile payment… Continue Reading

Mobile Carrier Billing – At Risk?

Posted in Regulatory and Compliance

Carrier billing is certainly not new to the payments industry, but as digital technologies continue to evolve, companies have increasingly looked to mobile carrier billing to improve the reach and efficiency of digital transactions. But recent activities by the Senate Commerce Committee, including a proposed bill to impose additional consumer protection obligations on both wireline… Continue Reading

FinCEN offers clarification of prepaid access rule for bank-controlled prepaid access programs

Posted in Regulatory and Compliance

The Financial Crimes Enforcement Network (FinCEN) recently issued a letter (FIN-2012-R003) clarifying the registration obligations of certain participants in a bank-controlled prepaid access program. In general, the “provider of prepaid access” in a prepaid access program must register with FinCEN as a Money Services Business (MSB). However, a bank is excluded from being an MSB…. Continue Reading

CFPB Releases First Annual Report on Consumer Credit Card Complaints

Posted in Regulatory and Compliance

The Consumer Financial Protection Bureau (“CFPB”) released its first “Consumer Response Annual Report” on March 31, 2012 (“Annual Report”), summarizing over 6,000 consumer credit card complaints that the CFPB received from July 21 through December 31, 2011. According to the Annual Report, the most common complaints related to billing disputes, identity theft/fraud/embezzlement and APR/interest rates,… Continue Reading

Electronic registration form available for prepaid access providers to register with FinCEN by March 31, 2012

Posted in Regulatory and Compliance

  The Financial Crimes Enforcement Network (FinCEN) recently released its new “FinCEN Report 107 RMSB” to facilitate the electronic registration of “providers of prepaid access” with FinCEN by the end of this month, March 31, 2012.  (See FinCEN’s notice here.)  The new RMSB form was released because the legacy Form 107 did not accommodate electronic… Continue Reading

CFPB Issues Final Remittance Transfer Regulations Under Dodd-Frank Act

Posted in Regulatory and Compliance

On Jan. 20, 2011, the Consumer Financial Protection Bureau (CFPB or Bureau) released its long-anticipated rules governing certain electronic money transfers or “remittance transfers.” 1  The new “remittance transfer” rules implement provisions of Dodd-Frank 2  by imposing—for the first time—federally mandated disclosure, error resolution and cancellation rights on remittance transfer providers, which can include both financial… Continue Reading

FTC Proposes to Extend Consumer Protections in “Mail or Telephone Order Merchandise Rule” to All E-Commerce and Payment Methods

Posted in Regulatory and Compliance

On Dec. 14, 2011, the public comment period for the Federal Trade Commission’s proceeding to “update” the “Mail or Telephone Order Merchandise Rule” (MOTM Rule) closed, setting the stage for the FTC to potentially expand the reach of the MOTM Rule to impose certain shipping, customer notification and refund requirements on essentially every Internet merchandise… Continue Reading