Payments Pros – The Payments Law Podcast

In the second installment of a four-part Payments Year in Review series, Keith Barnett and Josh McBeain discuss significant developments in the payments landscape from the Consumer Financial Protection Bureau (CFPB) in 2024 and expectations for 2025.Our co-hosts continue with a discussion of the CFPB's proposed interpretive rule on earned wage access products, highlighting its broad definitions and aggressive stance on fees, which conflict with many state laws.They also discuss significant CFPB rulemakings, including the final credit card late fee rule and the overdraft rule, both of which face legal challenges. Keith and Josh close out this episode by discussing the interpretive rule on buy now, pay later transactions and the CFPB's circular on credit card rewards programs.

In the first installment of a four-part Payments Year in Review series, Keith Barnett and Carlin McCrory discuss significant developments in the payments landscape from the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) in 2024 and expectations for 2025.Our co-hosts begin with an overview of the CFPB's new rule for supervising large tech companies offering digital wallets and payment apps. Despite its finalization, and since our episode has been recorded, the rule has been challenged in the U.S. District Court for the District of Columbia.The discussion then shifts to the CFPB's final rule on personal financial data rights, aimed at enhancing consumer control over financial data. This rule includes provisions for data access, revocation, and standardized formats but may lead to increased costs for financial institutions.The episode concludes by highlighting changes to the remittance transfer rule, emphasizing the importance of accurate marketing regarding transfer speed and fees.

In the latest episode of Payments Pros, host Carlin McCrory welcomes Jesse Silverman to discuss the Consumer Financial Protection Bureau's (CFPB) recent order asserting supervisory authority over Google Payment Corp.The CFPB's claim is based on Dodd-Frank Section 1024, which includes a category for entities posing a risk to consumers. The CFPB cited 267 consumer complaints about Google Pay products as the basis for its action. Jesse highlights the ambiguity in terms like "risk" and "reasonable cause" within the Dodd-Frank Act and questions the material impact of CFPB supervision. Google Payment Corp. has sued the CFPB, arguing that the products in question are no longer offered and that the complaints are not substantial enough to warrant supervision. The episode delves into the broader implications of this precedent and the potential outcomes of Google Payment Corp.'s lawsuit.

In this special crossover episode of the Payments Pros and Crypto Exchange podcasts, our hosts are joined by colleague Alexandra Steinberg Barrage to discuss California's Department of Financial Protection and Innovation’s proposed rulemaking under the Digital Financial Assets Law (DFAL).The group discusses various aspects of the new cryptocurrency licensing regime, including licensure exemptions, required disclosures, conditional licensing, and digital asset kiosk requirements. They provide an overview of the DFAL, highlighting its broad licensing and enforcement framework, as well as recent legislative updates extending licensure deadlines. Comparisons are drawn between DFAL and New York's BitLicense, emphasizing the importance of harmonization across state regulations. The conversation also covers the exclusion of digital asset activities from money transmission licensure and the specific requirements for digital asset kiosks. Additionally, the episode touches on the potential impact of federal regulation and the ongoing tension between state and federal oversight in the cryptocurrency space.

In the latest episode of Payments Pros, hosts Keith Barnett and Carlin McCrory discuss a significant Consumer Financial Protection Bureau (CFPB) enforcement action against Global Tel Link Corporation (GTL), issued on November 14. This action resulted in a consent order addressing chargebacks, alternate payment channel fees, and handling of inactive accounts.

In the latest episode of Payments Pros, host Carlin McCrory is joined by Jason Cover to discuss the role of artificial intelligence (AI) in the payments industry. They define AI and generative AI, highlighting its capabilities in generating text, images, and other data. Jason outlines four key considerations for using AI: ensuring data quality, adhering to applicable laws, understanding AI operations, and maintaining human oversight.Carlin and Jason explore practical applications of AI in the payments sector, such as customer service chatbots and automated dispute resolution. Jason emphasizes the importance of supervised AI use to avoid potential liabilities, citing recent Consumer Financial Protection Bureau guidance.The episode also covers the evolving regulatory landscape, including state-level initiatives like Colorado's statute on high-risk AI. Jason underscores the complexity of navigating these regulations and the need for companies to stay informed about state law changes.

In the latest episode of Payments Pros, hosts Carlin McCrory and Keith Barnett are joined by James Stevens to discuss recent enforcement actions in the banking as a service (BaaS) space. They delve into regulatory trends, consent orders, and future anticipated regulatory scrutiny.James explains the concept of BaaS, highlighting the regulatory scrutiny it faces due to its rapid growth and complexity. The conversation covers common themes in enforcement actions, such as compliance with the Bank Secrecy Act and consumer protection laws. The group discusses the importance of robust due diligence, contracts, and ongoing monitoring in BaaS partnerships. The episode concludes with insights on scaling risk and compliance oversight functions and the potential impact of regulatory changes on BaaS programs.

In this episode of Payments Pros, host Josh McBeain is joined by Caleb Rosenberg, a member of the firm's Consumer Financial Services practice group, to discuss the complexities of business-to-business payments and the increasing state law requirements associated with them.Josh and Caleb explore the differences between merchant cash advances (MCAs) and factoring, noting that factoring involves the sale of already owed receivables, while MCAs involve the sale of future receivables. They also address the recent surge in state-level regulations, which has led states like California and New York to enact disclosure laws. Additionally, they discuss the challenges of making accurate disclosures, such as APR, in these variable transactions and the complexities arising from differing state regulations.

In this special joint episode of Payments Pros and The Consumer Finance Podcast, Chris Willis and Carlin McCrory introduce Trevor Salter, a seasoned financial services transactional attorney who recently joined Troutman Pepper. Trevor shares his unique career journey from aspiring environmental attorney to becoming a key player in consumer financial services. The discussion delves into Trevor's experience in strategic partnerships, card partnerships, and consumer data integrations, highlighting the synergies with the firm's comprehensive financial services practice. Tune in to learn more about Trevor's background, his decision to join the firm, and the exciting future ahead for the firm's financial services team.

In this episode of Payments Pros, host Keith Barnett reviews state legislative actions in 2024 related to payments, focusing on the Money Transmission Modernization Act (MTMA), earned wage access (EWA), and peer-to-peer payments.Keith discusses the MTMA, a model law aimed at standardizing state money transmitter laws. Seventeen states considered the MTMA in 2024, with eight states passing it in some form. Key provisions include removing the "in the business of" language, incorporating the agent of the payee exemption, and inconsistencies on whether to include payroll processors within the definition of money transmission. The MTMA also imposes bonding requirements, though these vary by state.Keith then transitions to EWA, noting that while four states proposed EWA-related laws in 2024, none were passed. Ohio remains a state to watch.Finally, the episode addresses a proposed New Jersey law criminalizing the failure to return erroneous electronic payments, raising concerns about its broad applicability and impact on payment processors.