Understanding the Basics of Payments Law

Understanding the fundamentals of payment laws and regulations is crucial to understanding how payments work. So is having a clear comprehension of how the laws and regulations interact with one another, particularly when there may be overlap. Which law applies to a payment transaction depends on who the end users are, what kind of institution acts as intermediary, and what form of transaction is used to move the money. The introduction of new kinds of payments service providers and completely new forms of currencies and payments is raising questions about what laws apply to fintech. With so many agencies overseeing overlapping aspects of the payments industry, sometimes different agencies might be taking contradictory views about emerging issues. This session delves into these issues and provides an overview of the most significant laws and regulations governing payments, including Uniform Commercial Code Articles 3, 4, and 4A, the Expedited Funds Availability Act and Regulation CC, the Electronic Funds Transfer Act and Regulation E, the CFPB’s authority to act against unfair deceptive, and abusive acts or practices, and recent updates to Regulation J in relation to FedNow. The session touches on the rules that structure the Federal Reserve’s payments services, including Regulation J and the Fed’s Operating Circulars. The speaker will also describe the OFAC/Bank Secrecy Act compliance regime that applies to all payments in the U.S.

Speakers: 

Scott Fryzel, Dykema Gossett, PLLC

Lauren Quigley, Dykema Gossett, PLLC

*This recording is not eligible for continuing education credits.

Tag(s): PLCS, Legal, Compliance, Regulatory