Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Karen Ross

Posts by Karen Ross

Fair Lending Analysis of Credit Cards

Posted in Credit/Debit Payments Resources

PLA today posts a link to a Philly Fed discussion paper entitled “Fair Lending Analysis of Credit Cards.”  The paper addresses, among other matters, disparate impact risks in credit scoring models and prescreen campaigns.  The paper is of interest not only for its conclusions and recommendations, but also as an indication of the continued regulatory… Continue Reading

Marijuana, Banking, and the “10-Foot Pole”

Posted in Financial Services Litigation and Enforcement, General, Regulatory and Compliance

On February 14, 2014, the Financial Crimes Enforcement Network (“FinCEN”) issued guidance aimed at clarifying Bank Secrecy Act expectations for financial institutions interested in providing services to marijuana-related businesses (“FinCEN Guidance”).  The FinCEN Guidance came on the heels of related guidance from the Department of Justice to its federal prosecutors regarding marijuana related financial crimes. … Continue Reading

FFIEC Finalizes and Clarifies Its Social Media Policy

Posted in Deals and Technology

The Federal Financial Institutions Examination Council (FFIEC) recently released its final supervisory guidance on social media use.  In January 2013, we wrote about the FFIEC’s proposed guidance in connection with the applicability of existing laws and policies to the social media activities of financial institutions.  Since that time the FFIEC received 81 official comments on its proposal.  The… Continue Reading

Mt. Holly Settled: Disparate Impact Questions Linger

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance

The Consumer Financial Protection Bureau (CFPB) and other agencies that apply disparate impact tests under the Equal Credit Opportunity Act (ECOA) appear to have dodged another bullet.  The background, recent events, and unsettled future are briefly outlined below. Background In April 2012, the CFPB released a Compliance Bulletin confirming its intent to recognize disparate impact as a… Continue Reading

MONEY2020: Big Bets on the Future of Emerging Payments

Posted in Deals and Technology, General

Earlier this month, DWT sponsored, and four members of the DWT FinTech team including PLA contributors Scot Tucker and Karen Ross attended, the second annual Money 2020 conference in Las Vegas.  Money 2020 is vying to be the premiere conference for the convergence of players in the emerging payments space.  This year’s attendees exceeded 4,000 persons, from… Continue Reading

FDIC Clarifies its Supervisory Approach to Payment Processor Relationships

Posted in Regulatory and Compliance

The Federal Deposit Insurance Corporation (FDIC) recently released a letter clarifying its policy and supervisory approach for financial institutions that provide services to payment processors who, in turn, provide services to merchants engaged in high risk activities. In summary, the brief letter assures FDIC-supervised banks and savings associations that relationships with such payment processors are… Continue Reading

50 State Survey of Gift Card Laws

Posted in Resource Database

The National Conference of State Legislatures (NCSL) recently released a chart that provides an overview of state gift card statutory requirements in all US states and territories as of mid-March 2013. While the chart is not exhaustive in its summary of each state’s law, it includes summaries of the state law sections that are often… Continue Reading

E-Commerce in the Cloud: Practical Tips for Structuring the Deal with a “Financial Institution”

Posted in Deals and Technology

At LSI’s recent Cloud Services and Related Big Data Issues Seminar in Seattle, WA, DWT’s Karen Ross presented on the topic of “E-Commerce in the Cloud: Practical Tips for Structuring the Deal with a ‘Financial Institution.’” Such tips included bringing in a banking lawyer early on, diagramming the flow of funds and data, determining which parties have… Continue Reading

The FFIEC Proposes Guidance on Social Media Use

Posted in Regulatory and Compliance

The Federal Financial Institutions Examination Council (FFIEC)[1] recently requested comment on its proposed guidance entitled Social Media: Consumer Compliance Risk Management Guidance.  FFIEC guidance consists of recommendations regarding supervisory matters.  This guidance proposes to address the applicability of current compliance laws, regulations and policies to social media activities conducted by financial institutions, including nonbank entities. … Continue Reading

Federal Reserve Bank of Boston Examines Security of Mobile Payment Technologies

Posted in Resource Database

The Federal Reserve Bank of Boston recently released a paper that examines how mobile payment technologies, chiefly NFC and cloud based technologies, address security of mobile payments at the point of sale.  The paper distinguishes between a mobile wallet, digital wallet and hybrid wallet based on the location where consumer personal information is stored.  After… Continue Reading

EPC White Paper on Mobile Payments

Posted in Resource Database

The European Payments Council, a decision making body of the European banking industry, released a mobile payments white paper in October 2012. The white paper presents an overview on mobile payments for Single Euro Payments Area (SEPA) payment instruments, including detailed analysis of both mobile contactless and remote payments. SEPA is an initiative to promote an integrated… Continue Reading

FFIEC Releases New Booklet for the Supervision of Technology Service Providers

Posted in Deals and Technology, Regulatory and Compliance

The Federal Financial Institutions Examination Council (FFIEC) recently announced a revision to its Supervision of Technology Service Providers booklet (TSP Booklet).  Concurrently, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued Administrative Guidelines for the Implementation of the Interagency Program… Continue Reading

OpEd: Is It the End of the World As We Know It?

Posted in Deals and Technology

If you’ve ever wondered what banking in a post-apocalyptic America might look like, look no further than the bacon barter and the ice cream bank. Who needs money when you have bacon and ice cream? Late last week the Wall Street Journal reported about the owner of an ice-cream parlor who opened a community-bank alternative… Continue Reading

The Federal Reserve Bank of Philadelphia Takes A Closer Look at Prepaid Cards

Posted in Regulatory and Compliance

Recently the Payment Cards Center at the Federal Reserve Bank of Philadelphia and the Center for Financial Services Innovation jointly released a discussion paper on the use of certain open-loop prepaid cards.  Consumers’ Use of Prepaid Cards: A Transaction-Based Analysis analyzes  general purpose reloadable prepaid (GPR) and payroll cards based on more than 280 million… Continue Reading

Credit Card Consumer Complaints Database Goes Live

Posted in Regulatory and Compliance

Today the Consumer Financial Protection Bureau (CFPB) became the first federal financial regulator to share individual consumer complaints with the public.  As a follow-up to the first annual report on consumer credit card complaints released on March 31, 2012, which we wrote about here, the CFPB launched the beta version of its Consumer Complaint Database… Continue Reading

LSI Conference on Mobile Payments

Posted in Deals and Technology, Regulatory and Compliance

Law Seminars International hosted a mobile payments conference in Atlanta, Georgia on May 17th and 18th that featured high profile players such as American Express, PayPal and Starbucks, major bank regulators, and faculty from leading law firms, consulting firms and industry associations.  The conference’s objective was two-fold – to educate attendees about the current mobile… Continue Reading

MasterCard and Western Union Expand Partnership

Posted in Deals and Technology

In December 2011 MasterCard and Western Union announced an expansion of their existing prepaid partnership to include electronic payment features and a global reach in their effort to target the unbanked and under-banked. Prior to this new initiative, the companies jointly provided prepaid services in the United States for about a year. Under the new… Continue Reading

The NFC Wallet Tug of War

Posted in Deals and Technology

Contactless proximity payments using near field communications (NFC) are attracting an increasing amount of attention these days. Currently, the two most widely-promoted NFC mobile wallets are the Google Wallet and the ISIS wallet.  Both wallets are mobile applications that allow a consumer to securely store credit, debit and other card information on  a special piece… Continue Reading

Evolution of the Mobile Landscape: Classification of Emerging Mobile Payment Systems

Posted in Deals and Technology

With the exponential growth of smartphone sales, start-ups and established technology and financial service companies alike are seeking to launch innovative mobile payments solutions. Such programs may leverage the existing mobile infrastructure, such as short messaging service (SMS), introduce new technology, such as near field communication (NFC), or take a hybrid approach by combining existing… Continue Reading