Welcome to Innovating Payments Top 3 News Headlines for the Week of Oct. 2. In this issue, we hear from Connie Theien, Head of Industry Relations for Federal Reserve Financial Services about the strategic shifts financial institutions and processors are making. Also in the news, Nacha, the Faster Payments Council, and the Payments Associations announced a cross-industry collaboration to create the Accredited Faster Payments Professional (AFPP) program. Additionally, The Clearing House announced the release of a white paper that analyzes the application of the Electronic Funds Transfer Act (EFTA) and Regulation E (Reg E) error resolution requirements to financial institutions involved in certain person-to-person (P2P) transactions.
Read on to learn more.
1. As FedNow(SM) Rollout Progresses, Banks, Processors Begin Strategic Shifts (PYMNTS)
Less than a year from now, faster payments - instant ones, in fact - will be a widespread reality in the United States. Connie Theien, head of industry relations for Federal Reserve Financial Services, told PYMNTS that the work going on behind the scenes has involved a seismic shift of how companies think about operations and the payments landscape in general. The launch is slated for next summer, and the service has already enrolled 120 separate organizations in the pilot program - 80 financial institutions (FIs) and 40 processors and other service providers that Theien said connect smaller banks to the FedNow Service. (Read more.)
2. Nacha, Faster Payments Council and Payments Associations Announce Accredited Faster Payments Professionals Program (Nacha)
Today, Nacha, the U.S. Faster Payments Council (FPC) and our nation's Payments Associations announced a first-of-its-kind alliance to create the Accredited Faster Payments Professional (AFPP) program. This partnership demonstrates a cross-industry collaboration to benefit the entire payments community. Earlier this year, Nacha launched the Faster Payments Professional (FPP) Certificate Program, and the first modules will be available in the fourth quarter. The AFPP builds on the FPP Certificate program to offer a rigorous and centralized accreditation program allowing payments professionals to demonstrate their expertise across all faster payment types, including Same Day ACH, instant payments and wire. (Read more.)
3. TCH White Paper Examines Regulation E Error Resolution for Intermediated Transfers (The Clearing House)
The Clearing House has released a white paper that analyzes the application of the Electronic Fund Transfer Act (EFTA) and Regulation E (Reg E) error resolution requirements to financial institutions involved in certain person-to-person (P2P) transactions. The white paper aims to provide additional information for the financial institutions involved in an Intermediated Transfer – the sender's bank and the transfer provider – and to help supplement the Frequently Asked Questions (FAQs) issued by the Consumer Financial Protection Bureau (CFPB) in June and December 2021 regarding the EFTA and its implementing regulation, Reg E. (Read more.)
What strategic shifts is your organization taking to prepare for the launch of FedNow? How might the Accredited Faster Payments Professionals Program and certification position your financial institution for the future of payments? How might your organization use TCH's white paper, which examines Regulation E error resolution for intermediated transfers, to educate staff?
Check back soon for our next issue, which will again highlight the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
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.