Late Fees: No Longer Junk, Back to Contractual Commitments
Back in the old days of 2023, regulators were calling late fees “junk.” We kept calling them “contractual commitments,” as you can read here. Today, the American Banker notes that regulators have backed down from their attempt to mandate that credit card late fees be reduced from an average of $32 to $8, in a […]
The Future of Payment Cards: Metal, Personalization, and the Power of Design
Because digital payments offer such powerful use cases, many speculate that they will inevitably replace physical cards. However, this perspective overlooks several key factors—not only are physical cards highly reliable at the point of sale, but they also offer personalization options that create a tangible connection between consumers and their payment method, something digital payments […]
Social Security Unveils New Anti-Fraud Controls
After months of floating various anti-fraud proposals, the Social Security Administration (SSA) has settled on what appears to be a more or less permanent program to combat fraud. Effective immediately, the agency will conduct anti-fraud checks on all phone applications for benefits. Applicants flagged for suspicion will be required to verify their identity in person. […]
Wells Fargo Ramps Up Hiring to Capture Growing Tech Market
Following significant tech breakthroughs in recent years, Wells Fargo is aiming to expand its presence in the sector by strengthening its team. Last year, the financial institution increased headcount in its U.S. technology banking unit by 20%, with plans to bring on additional talent in the coming months. Wells Fargo’s tech banking unit supports clients […]
The Cost of Inaction: Why FIs Are Investing in Scam Prevention Now
A consumer receives a text about an unpaid toll bill demanding immediate payment—only they haven’t driven on a toll road recently. A homeowner locked out of their house calls a locksmith, only to discover the business listing on Google Maps was fake, and they have been redirected to a criminal trying to manipulate them into […]
New York Residents Could Pay Bills with Crypto, Should Legislation Pass
As digital assets gain wider adoption, a proposed law in New York would allow state agencies to accept cryptocurrency for government-related payments. Assembly Bill A7788 would amend state financial laws to allow agencies to accept Bitcoin, Ether, Litecoin, and Bitcoin Cash. This would enable residents to use these digital assets to pay for fines, taxes, […]
Block Hit with $40M Fine Amid Ongoing Compliance Failures
The $40 million fine imposed this week on Block and its subsidiary Cash App is just the latest in a series of hefty penalties the company has faced as it grapples with ongoing compliance concerns. In the latest imbroglio, New York’s Department of Financial Services said that Block’s customer due diligence and risk-based controls were […]
Perpetual Motion: The Case for Continuous KYC
Last October, TD Bank was fined more than $3 billion after pleading guilty to violations of the Bank Secrecy Act and conspiracy to commit money laundering. The unprecedented charges stemmed from the bank’s failure to detect and prevent illicit financial activity. Specifically, it was cited for not implementing robust Know Your Customer (KYC) procedures, neglecting […]
UPI Is Expanding the Instant Payments Use Case to Big-Ticket Items
The Reserve Bank of India (RBI) plans to lift the transaction limits on its Unified Payments Interface (UPI) system, a move expected to dramatically increase the capabilities of the real-time payments system. Previously, UPI transactions were capped at Rs 1 lakh (approximately $1,162) for merchant transactions, forcing many users to either split payments for larger […]
Many Coachella Attendees Are Buying Tickets Through BNPL
When the Coachella music festival kicks off, many attendees will have secured their tickets through an installment plan. Bypassing traditional buy now, pay later (BNPL) providers, Coachella’s payment plans have become especially popular with the festival’s mostly younger crowd—and a significant revenue source for its promoters. According to reporting from Billboard, approximately 60% of general […]