Welcome to Innovating Payments' Top 3 News Headlines for the Week of Nov. 12. The Clearing House (TCH) announced it had expanded its RTP® network strategic team to include Keith Melton as Senior Vice President and RTP Strategic Program Manager. Meanwhile, the Consumer Financial Protection Bureau (CFPB) proposes oversight of nonbank companies, including big tech companies and digital wallets and payment app providers. Also, in this issue's round-up, banks that use the payment app Zelle have begun reimbursing imposter scam victims.
Read on to learn more.
1. The Clearing House Expands RTP® Network Strategic Team (The Clearing House)
The Clearing House (TCH), the leading innovator and operator of U.S. payments networks, announced today that Keith Melton has joined the company as Senior Vice President and RTP® Strategic Program Manager, where he will drive execution of the next phase of TCH's instant payments strategy and, in particular, the growth of the RTP network, strengthening its position as the instant payments leader in the United States. (Read more.)
2. CFPB Proposes New Federal Oversight of Big Tech Companies and Other Providers of Digital Wallets and Payment Apps (CFPB)
The Consumer Financial Protection Bureau (CFPB) is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps. Driven largely by Big Tech and other large technology firms, digital payment apps and wallets continue to grow in popularity, but many of the companies are not subject to CFPB supervisory examinations. The rule proposed today would ensure that these nonbank financial companies – specifically those larger companies handling more than 5 million transactions per year – adhere to the same rules as large banks, credit unions, and other financial institutions already supervised by the CFPB. (Read more.)
3. Zelle Network Banks Begin Reimbursing Imposter Scam Victims (PYMNTS)
Banks that use payment app Zelle have reportedly started refunding customers victimized in imposter scams. According to a Monday (Nov. 13) report by Reuters, Zelle operator Early Warning Services (EWS) says the 2,100 firms on Zelle began in late June reimbursing customers tricked into sending money to crooks claiming to represent the government, a bank or service provider. Those refunds are "well above existing legal and regulatory requirements," EWS Chief Fraud Risk Officer Ben Chance told Reuters. (Read more.)
What does the expansion of the RTP strategic team imply for the RTP network and its participants? In what ways will the CFPB proposing new federal oversight of big tech companies and other providers of digital wallets and payment apps impact the market and its customers? Finally, what are the implications of and impact on banks reimbursing Zelle imposter scam victims?
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.