Welcome to Innovating Payments Top 3 News Headlines for the Week of Jan. 28. Disturbed by the surge in fraud draining bank accounts through popular mobile payments apps like Venmo, Zelle, and Cash App, Manhattan District Attorney Alvin Bragg, Jr., has sent scathing letters to the CEOs of each company, demanding immediate action to protect consumers. Meanwhile, the Consumer Financial Protection Bureau (CFPB) has proposed a rule to reign in excessive overdraft fees charged by the nation's largest financial institutions. The Clearing House has entered into a multi-year agreement with Mastercard to improve payments capabilities for consumers, businesses, and governments and build upon TCH's real-time payments network.
Read on to learn more.
1. Venmo, Zelle and Cash App Fraud Draining Bank Accounts, DA Warns (Newsweek)
Alarmed by a surge in fraud draining bank accounts through popular mobile payment apps like Venmo, Cash App and Zelle, Manhattan District Attorney Alvin Bragg, Jr., has sent scathing letters to the CEOs of each company, demanding immediate action to protect consumers. In the letters, Bragg described the crimes as involving an unauthorized user gaining access to unlocked devices, then stealing significant sums of money from bank accounts by making purchases with the mobile payment apps and using financial information from them to open new accounts. (Read more.)
2. CFPB Proposes Rule to Close Bank Overdraft Loophole that Costs Americans Billions Each Year in Junk Fees (CFPB)
The Consumer Financial Protection Bureau (CFPB) today proposed a rule to rein in excessive overdraft fees charged by the nation's biggest financial institutions. The proposal would close an outdated loophole that exempts overdraft lending services from longstanding provisions of the Truth in Lending Act and other consumer financial protection laws. For decades, very large financial institutions have been able to issue highly profitable overdraft loans, which have garnered them billions of dollars in revenue annually. Under the proposal, large banks would be free to extend overdraft loans if they complied with longstanding lending laws, including disclosing any applicable interest rate. (Read more.)
3. Mastercard, TCH to enhance RTP network (Payments Dive)
Mastercard has entered into a multi-year tie-up with The Clearing House to improve payments capabilities for consumers, businesses and governments and build upon TCH's real-time payments network, the card network said last week. "The new agreement [is] more of a partnership that focuses on co-development of new real-time payments capabilities," The Clearing House spokesperson Greg MacSweeney said in a statement to Payments Dive. "Developers from TCH and Mastercard will work on enhancements for the RTP network that will help financial institutions provide instant payments capabilities to customers." (Read more.)
Has your financial institution seen a surge in fraud draining bank accounts through mobile payment apps like Venmo, Cash App, and Zelle? What does your organization think about the CFPB's increased scrutiny of financial institutions to protect consumers? Where do instant payments fit into your strategy?
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.
 |
... |
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.
|