2400 E. Missouri Avenue
Phoenix, AZ 85016
Tuesday, October 5, 2010
RECENT REGULATORY AND OTHER DEVELOPMENTS FOR ATM AND DEBIT CARDS
The issuers of ATM and debit cards are weathering a turbulent periods. New Regulation E requirements went into effect on July 1 for new accounts and August 15 for existing accounts, and the Durbin amendment will introduce another set of pricing changes. Under Reg E, ATM and one-time debit card overdraft fees are no longer assessable absent an affirmative consumer's consent. Prompted by public pressure to police bank fees, the legislatures and regulators now rigorously scrutinize service fees and charges and other terms for these products. In this session, we will explore these new regulatory and legislative developments, providing compliance guidance to clear sailing. Further, effective October 1, under a product called "Original Credit Transaction," Visa is requiring that all issuers of Visa debit and prepaid reloadable cards accept credit of funds, adding value to such cards. While sending of funds is optional, the receipt of funds is mandatory, as to issuers. This session will identify some of the regulatory and other issues this Visa initiative raises.