Emerging Payment Systems


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Building on the incredible success of our Emerging Payment Systems series of conferences, and in response to demand from the market, American Conference Institute has developed the 7th National Forum on Balancing Innovation with Consumer Protections in Emerging Payment Systems. This conference will bring together an unparalleled faculty of in-house counsel and compliance professionals, senior executives from industry-leading companies, high-level regulatory and enforcement officials, and top outside counsel specializing in emerging payment systems who will provide you with the insights and tools necessary to navigate the legal, compliance, technical, and business hurdles arising from new payment products and technologies

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Emerging Payment Systems

  1. 1. Emerging Payment Systems Dodd-Frank, the CFPB and FTC, the Durbin Amendment, FinCEN Involvement, the Fed and More: Providing Legal Guidance in an Uncertain Federal Regulatory Landscape for Emerging Payment Systems Thursday, September 27, 2012
  2. 2. Barrie VanBrackle, Partner Manatt, Phelps & Phillips, LLP
  3. 3. Joseph P. Vitale Partner Schulte Roth & Zabel LLP 919 Third Avenue New York, NY 10022 212.756.2485 joseph.vitale@srz.com
  4. 4. Jessica Drew Senior Legal Counsel MetaBank
  5. 5. Emerging Payment Systems Lauren Saunders Managing Attorney National Consumer Law Center
  6. 6. FTC and Emerging Payments James Chen Division of Financial Practices Federal Trade Commission
  7. 7. Interests of the developer of an Emerging Payment Product • • • • • • Data collection and retention; Data usage; Security assurance; Privacy of member information...but Maximum flexibility, in that... Customer data is currency. Barrie VanBrackle, Partner Manatt, Phelps & Phillips, LLP
  8. 8. Emerging Payment Systems: Considerations for Banks Third-Party Risk Management: • Front-End Due Diligence • Policies and Procedures to Identify and Manage Strategic, Reputation, Compliance, Transaction and Credit Risks • Well-Constructed and Detailed Contract • Robust Audit and Compliance Mechanisms New Technologies, but Largely the Same Rules: • AML/BSA/OFAC • FFIEC Customer Authentication Guidelines • Reg. E, EFTA (incl. new Int’l Remittance Rule) • GLBA Privacy Rules • ESign • NACHA Rules or Check 21/Reg. CC/UCC (for RDC) • State Laws governing Deposit-Taking and Money Transmission Joseph P. Vitale
  9. 9. International Remittance Rule The new Final Rule is available here: http://files.consumerfinance.gov/f/201208_CFPB_remittance_rule.pdf
  10. 10. FTC & Emerging Payments • FTC has jurisdiction over most businesses, with limited exceptions • Mission is to prevent and stop unfair or deceptive practices • Primary FTC concerns regarding payment systems – Dispute resolution – Data security – Privacy Federal Trade Commission
  11. 11. Principles for Fair and Safe Payment Systems 1. 2. 3. 4. 5. Consumer can choose which system to use Consumer understands the cost and terms Funds are safe Protection from errors, unauthorized transfers Ample free access to account information (customer service, statements, balances) 6. No unfair fees or tricks 7. No credit features embedded in deposit products 8. Privacy protection, security from predatory products
  12. 12. What does the future hold?