Welcome to the Top 3 Innovating Payments News Headlines for the Week of May 12, 2025. In this issue, President Trump signed a resolution to overturn the Consumer Financial Protection Bureau's (CFPB) final rule, which placed a $5 cap on overdraft fees for banks and credit unions holding more than $10 billion in assets. Meanwhile, as more people are willing to pay for instant payments, financial institutions have growing opportunities for new revenue streams. Finally, the CFPB announced that it will deprioritize enforcement of a 2024 rule that previously classified lenders offering Buy Now, Pay Later (BNPL) products as credit card providers under the Truth in Lending Act.
Read on to learn more.
1. Trump Signs Resolution to Nix CFPB Overdraft Rule (Banking Dive)
President Donald Trump signed a resolution Friday to overturn the Consumer Financial Protection Bureau's final rule that would have capped, at $5, the overdraft fee that banks and credit unions with more than $10 billion in assets could charge. "The Biden administration's ill-conceived rule imposing new price controls on overdraft services … harmed the very consumers the CFPB is supposed to protect," Sen. Tim Scott, R-SC, said in a statement Friday. (Read more.)
2. Consumer Willingness to Pay for Instant Payments Fuels New Revenue Streams for Banks (PYMNTS.com)
Financial transactions are undergoing a transformation, driven by consumer demand for speed, certainty, and convenience. While real-time payments have been on the horizon for some time, the expectation for instant access has extended to disbursements. As consumers increasingly receive payments like earnings, tax refunds, insurance claims, and loan disbursements from corporate and government entities, they are turning to instant payment methods more often, primarily driven by a need for immediate access and the assurance that money is readily available. (Read more.)
3. CFPB to Deprioritize Enforcement of Buy Now, Pay Later Rule (ABA Banking Journal)
The Consumer Financial Protection Bureau said this week that it will not prioritize enforcement of a 2024 rule defining lenders who provide buy now, pay later products as credit card providers under the Truth in Lending Act. The CFPB issued the interpretive rule under former Director Rohit Chopra, alleging that its decision to regulate BNPL products as credit card products was consistent with Regulation Z, which implements the Truth in Lending Act. (Read more.)
What downstream implications might President Trump's actions to override the CFPB's overdraft rule have on financial institutions and their customers? How can financial institutions leverage customers' willingness to pay for instant payments to generate new revenue streams? How might the CFPB's decision to deprioritize the BNPL rule enforcement impact the industry?
Check back soon for our next issue, which will highlight the industry's most pressing and essential developments. In the meantime, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, AFPP, APRP
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.
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