Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Category Archives: Deals and Technology

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Evolution of the Mobile Payment Market

Posted in Deals and Technology
The payments industry stands on the edge of unparalleled payment innovation:  mobile wallets, wearables, cloud-based payment cards, tokens and digital cash.  What do they all mean and which ones are likely to actually change the way we pay for things? The banks remain key players in the deployment of major mobile payment solutions and the operation of t… Read the rest

FinTech – Worlds Colliding or Bridging a Divide?

Posted in Deals and Technology, Regulatory and Compliance
  The payments industry is undergoing unprecedented growth, rapid technological advancements, and a flood of new entrants into the market. Questions abound as to how all of the stakeholders will work together, which products will be adopted by consumers and retailers, best practices for managing privacy and data security risks, and how federal an… Read the rest

Regulate In Haste, Repent At Leisure, Bank Lobbyists Warned

Posted in Deals and Technology, Regulatory and Compliance
In light of The Clearing House (TCH), a 153 year-old banking association and payments company, pushing legislators to address gaps in data security practices of alternative payment providers (APPs) in a recent white paper, Mark Taylor from PaymentsCompliance spoke to several industry thought leaders, including DWT’s Andy Lorentz, to get perspec… Read the rest

Co-branding Credit Cards with Charities: Commercial Co-Venture Issues

Posted in Deals and Technology
A cobranded credit card program in which the “merchant” is in fact a charity may be subject to special rules relating to the regulation of “commercial co-ventures” (also known as “cause-related marketing”).  Issuers and charities contemplating or operating such programs should keep these rules in mind to avoid regulatory problems. Alth… Read the rest

“Predominant economic interest” — CashCall, Inc. v. Morrisey

Posted in Deals and Technology, Financial Services Litigation and Enforcement
PLA today posts (alongside the already-posted public WebBank deals) a petition for certiorari filed in the U.S. Supreme Court a few months back in the CashCall rent-a-charter / true lender litigation. In this case, West Virginia’s Attorney General successfully alleged that CashCall was the “de facto lender” based on its “predominant econom… Read the rest

Future Tense: Contemplating the Impending Transition to Digital Wallets and Mobile Prepaid Platforms over the Next 5 Years

Posted in Deals and Technology
On June 11, DWT payments partner Andy Lorentz joined Kevin Boglarsky (Director, Payment Products at Discover), James Hutchison (SVP Emerging Commerce Products, FIS), and Brian Knight (Associate Director, The Milken Institute) at the NBCPA’s Power of Prepaid conference in Washington, DC, to share insights on the future of digital payments and techn… Read the rest

Plus ça change…NYDFS releases final BitLicense regulations

Posted in Deals and Technology, Regulatory and Compliance
The New York State Department of Financial Services (NYDFS) released final BitLicense regulations on June 3, 2015, almost eleven months after the initial BitLicense proposal was issued.  The initial proposal went through two rounds of public comment and revision; however industry participants and commenters were largely disappointed by the limite… Read the rest

Finovate Summary

Posted in Deals and Technology
Two DWT payments lawyers, Gwen Fanger and Pete Johnson, attended the Finovate conference in San Jose on May 12th and 13th.  The Finovate conference focuses on FinTech innovations and is structured as a series of 7-minute, individual product demos over two days.  More information can be found here. The conference was attended by early stage companies de… Read the rest

Mobile Wallet Discussion at 2015 FinTech Startups Conference

Posted in Deals and Technology
At the recent 3rd Annual FinTech Startups Conference in New York City, DWT payments team member Claude Goetz joined a panel that included Jenny Fielding (Techstars), Mark Egerman (Cover), Michael Dudas (Button), and Andrew Dresner (JP Morgan Chase & Co.) to discuss the burgeoning mobile wallet market, with a particular focus on the market since the l… Read the rest

FFIEC Release – Business Continuity Planning For Outsourced Technology Services

Posted in Deals and Technology, Regulatory and Compliance
The Federal Financial Institutions Examination Council (FFIEC) has released a new appendix to the “Business Continuity Planning” booklet of the FFIEC Information Technology Examination Handbook containing guidance that is intended to align financial institutions’ oversight of the business continuity planning (BCP) activities of their th… Read the rest

Open Source Software and Virtual Currency: Exempt Organizations Issues in the Digital World

Posted in Deals and Technology
At the ABA Section of Taxation 2015 Midyear Meeting that took place on January 30, 2015, in Houston, Texas, DWT payments team member David Lawson, along with Michael Durham from Caplin & Drysdale, Chartered and Ingrid Mittermaier from Adler & Colvin, presented on the topic of Open Source Software and Virtual Currency: Exempt Organizations Issue… Read the rest

State Virtual Currency Regulatory Heat Map

Posted in Deals and Technology, Regulatory and Compliance
As we approach the end of a very active year in the emergence of virtual currency regulation, we developed a heat map of the regulatory climate faced by virtual currency wallet providers and exchanges – entities who maintain control over a consumer’s virtual currency assets as part of their services.* The compliance obligations of such companiesRead the rest

CSBS Emerging Payments Task Force Issues Virtual Currency Policy Framework

Posted in Deals and Technology
The recently formed Emerging Payments Task Force of the Conference of State Bank Supervisors (CSBS) issued a proposed policy on state virtual currency regulation on Dec. 16, 2014 (the “Policy”). The Policy identifies core public interests that states should protect and provides a road map for state regulatory oversight of certain virtual currency… Read the rest

CFPB Proposed Prepaid Account Rule

Posted in Deals and Technology, General
On November 13, 2014 the Consumer Financial Protection Bureau issued its long-awaited proposed rule on prepaid products. The rules would apply broadly to any “prepaid account,” whether in the form of a card, code or other device, capable of being loaded with funds that can be used at unaffiliated merchants, for peer-to-peer transfers, or for ATM with… Read the rest

Upcoming Event: The Future of Payments is … Now (?)

Posted in Deals and Technology
Bill Gates once opined that “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.” Join us in an informal conversation at Money2020 about trends in the legal, compliance and state licensing landscape for payments and find out what you need to know now to better prepare for tom… Read the rest

CFPB Proposes No-Action Letter Policy for Innovative Products

Posted in Deals and Technology, Regulatory and Compliance
The Consumer Financial Protection Bureau has proposed a no-action letter policy under which the agency would issue letters stating that its staff “has no present intention to recommend initiation of an enforcement or supervisory action” with respect to specified matters involving innovative financial products or services. The proposal is an enc… Read the rest

Chip-and-PIN is Coming…To the US Government

Posted in Deals and Technology, Regulatory and Compliance
Last Friday, in the wake of numerous data breaches, President Obama signed a new Executive Order that will change how federal agencies use payment cards and allow access to certain government portals.  Those changes include the adoption of chip-and-PIN (also known as EMV) payment terminals and cards, and the implementation of multi-factor authRead the rest

CFPB Identifies Deceptive, Abusive Practices in the Marketing of Credit Card Promotional APR Offers

Posted in Deals and Technology, Regulatory and Compliance
The Consumer Financial Protection Bureau recently issued a bulletin (CFPB Bulletin 2014-02) warning credit card issuers to avoid potentially deceptive and abusive practices in connection with the marketing of credit card promotional APR offers. Among other things, the Bulletin highlights the challenges that companies face in complying with prescr… Read the rest

The CFPB and the Technological Revolution

Posted in Deals and Technology, Regulatory and Compliance
The Consumer Financial Protection Bureau (CFPB) Director Richard Cordray emphasized during the CFPB’s September 11, 2014, meeting with the Consumer Advisory Board the CFPB’s new focus on protecting consumers who use mobile technologies with financial services and products.  Cordray cited the following interesting statistics during his pres… Read the rest

CFPB Issues Consumer Advisory on the “Wild West” of the Virtual Currency Economy

Posted in Deals and Technology, Regulatory and Compliance
The Consumer Financial Protection Bureau (“CFPB”) recently issued a consumer advisory summarizing the purported risks of virtual currencies, and announced that it would begin collecting complaints from the public regarding companies that offer products and services related to virtual currency payment technologies. More than sixteen months a… Read the rest

New York Becomes First State to Propose Virtual Currency Regulations

Posted in Deals and Technology, Regulatory and Compliance
On July 17, 2014, the New York State Department of Financial Services (DFS) became the first state agency to release proposed regulations specifically governing the crypto-currency industry.  The proposed regulations were published in the New York State Register on July 23, 2014, initiating a 45-day public comment period under the New York State AdmRead the rest