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Table of Contents

Lead Story

Cooperation spurs progress in 2012


Industry Update

Experts doubt SAFE WEB Act slows cyber crime

CFPB seeks to refine money transfer rules

Retailers appeal preliminary approval of settlement

Technology spurs cashless adoption


AmEx, Wal-Mart, partner on prepaid debit card

Going postal with financial services

The prognosis for payments - 2013

Selling Prepaid

Prepaid in brief

Blumenthal bill targets gift card fees, expiration dates

First ATM-dispensed, multibrand gift card program in pilot


The confusing state of mobile

Patti Murphy
ProScribes Inc.


Street SmartsSM:
Five predictions for 2013

Jeff Fortney
Clearent LLC

Making sense of 'sensemaking'

Dale S. Laszig
Castles Technology Co. Ltd.

No reservations about mPOS at eateries

Rick Berry
ABC Mobile Pay Inc.

Crunch time for holiday shopping data

Nicholas Cucci
Network Merchants Inc.

Subtle but crucial factors in portfolio sales

Adam Atlas
Attorney at Law

Empower your email

Brian Jones

Company Profile

American Microloan LLC

New Products

POS with a higher purpose

HioPOS Plus
Regal Payment Systems LLC

More leads in less time

Press 1 Campaign
Live Reps Call Center


Change be with you in 2013


10 Years ago in The Green Sheet

December 23, 2002 Issue 02:12:02


Resource Guide



2013 events calendar

A Bigger Thing

The Green Sheet Online Edition

December 24, 2012  •  Issue 12:12:02

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CFPB seeks to refine money transfer rules

The Consumer Financial Protection Bureau is refining the rules that govern the business practices of money transfer providers. The CFPB proposed in a Nov. 27, 2012, bulletin that refinements be made to the rules requiring remittance transfer providers (RTPs) to disclose exchange rates, fees and taxes to consumers; the bureau also wants to change the rule that covers RTPs' liability for customer errors.

The CFPB bulletin stated the proposed adjustments will help RTPs implement and comply with the rules without impacting consumer protections. The bureau said it will "proceed on a fast track" and issue a formal notice of proposed rulemaking in December 2012 to detail the changes and receive public comment.

The bulletin said the bureau will issue a final rule "as quickly as possible" after considering public comments. The final rule will be in effect 90 days after the proposal is finalized.

Remittance implementation

The Dodd-Frank Act of 2010 added a new section to the Electronic Fund Transfer Act (EFTA) that requires the CFPB, an agency created by Dodd-Frank, to develop disclosure and error resolution requirements for overseas RTPs.

CFPB's proposed Remittance Rule Implementation would add a new section to Regulation E of the EFTA requiring RTPs disclose all costs of remittance transfers to consumers prior to transactions being consummated. It also makes RTPs liable for remittance transfer errors even if customers provide inaccurate account numbers or routing information.

Public objections

Following publication of its proposed rule changes, the CFPB received public comment that pointed out it would be difficult for RTPs to comply with the rules requiring them to keep accurate databases of national and local taxes, as well as other fees charged by financial institutions in various countries around the world.

The proposed rule refinements would require RTPs to track and disclose only published bank fee schedules. It also would require that RTPs report and disclose only national taxes that apply to money transfers.

Other comments received by the CFPB objected to holding RTPs liable for nondelivery or late delivery of remittance transfers when customers provide incorrect account numbers. The CFPB now proposes to release RTPs from liability if they can demonstrate that consumers provided wrong information. However, RTPs would still be required to make good faith efforts to recover the funds.

A sigh of relief

On Dec. 3, 2012, retail risk expert David Lott wrote on the Retail Payments Risk Forum of the Federal Reserve Bank of Atlanta, "While these modifications are termed 'limited' by the CFPB, remittance providers must be breathing a measured sigh of relief, especially regarding the shift in liability from consumer-created errors. It will be interesting to monitor the impact of these regulations to determine if there has been any constriction in the number of countries served due to the additional requirements."

The final rule governing foreign remittance transfers is set to take effect Feb. 7, 2013, but the CFPB said it now expects its proposed refinements to Reg E will push that date back to "sometime during the spring of 2013."

For additional news stories, please visit and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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