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News

This article contains excerpts from news stories recently posted under The Office of the Comptroller of the Currency introduced
Breaking Industry News on our homepage. For links to these and other "special purpose" charters, which could potentially pro-
full news stories, please visit www.greensheet.com/breakingnews. vide federal money transmitter licenses mainly for fintech
php. companies. Many fintechs already possess state-issued
money transmitter licenses and facilitate virtual currency
exchanges. Money transmission, historically dating to the
19th century and now regulated at the state level, involves
sending money across distances, often through electronic
networks today.

Companies like Western Union and MoneyGram offer
these services for such functions as bill payments, money
transfers and online purchases.
Will FTC put kibosh on merchant surcharging? Rewards boost small business card satisfaction

The Biden Administration is cracking down on "junk The J.D. Power 2023 U.S. Small Business Credit Card Sat-
fees," which generate over $64 billion annually for a range isfaction Study revealed that rewards programs play a
of companies, including internet service providers, finan- pivotal role in small business customer satisfaction with
cial institutions, payment processors, event producers and credit card products. As the economic outlook improves,
more. The FTC and the CFPB proposed new rules target- credit card issuers are delivering services and rewards
ing fees identified as deceptive, including credit card sur- programs that boost customer satisfaction and spending,
charges. Consumers have expressed frustration about un- researchers found.
expected fees, such credit card surcharges, which can add
up to 3 to 5 percent to transaction costs. Credit card sur- However, elevated interest rates are causing concern, par-
charging is permitted in 48 states, and the Durbin Amend- ticularly regarding fee reasonableness and competitive
ment allows discounts for cash payments. rates. Managing these areas will be crucial for issuers as
more small businesses seek low-interest payment plans in
Credit card surcharge and cash discount programs may the coming year, researchers advised. Overall, satisfaction
face stricter regulations under the FTC's proposal, which with card issuers has increased by seven points compared
emphasizes the need for clear disclosure of additional to 2022, surpassing the pre-pandemic peak from 2019.
costs to consumers before they make a purchase. Failure
to comply could result in monetary fines. Restaurants have The report also indicates small businesses' financial situ-
been a focal point of criticism due to various fees added to ations have improved, with 38 percent reporting better
bills. The FTC's proposal may require inclusive pricing on financial standing than the previous year, and fewer busi-
restaurant menus to prevent unexpected credit card us- nesses carrying revolving debt (41 percent down from 44
age fees. The National Restaurant Association opposes the percent in 2022). Small businesses are increasingly using
proposal, advocating for transparency but not an outright personal and business credit cards for various expenses,
ban on fees, especially for restaurants. including office supplies, operating costs, travel, inven-
tory, meals and raw materials.
X marks its spot for payments, banking
Higher spending, particularly $20,000 or more per month,
Elon Musk aims to transform X, formerly Twitter, into a correlates with greater satisfaction, driven by better align-
comprehensive financial hub, encompassing various fi- ment of spending with rewards programs and increased
nancial transactions, not just payments. He envisions X interaction. American Express tops the list for small busi-
as the center of Americans' financial lives, encompassing ness customer satisfaction, primarily due to its robust re-
money, securities and more. wards programs. Other highly-rated card issuers include
Capital One, PNC, Citibank, Bank of America, Chase, and
At an employee meeting, Musk expressed confidence in U.S. Bank. But concerns persist about credit card terms,
rolling out this vision by the end of 2024. He hinted at po- especially among businesses with low annual revenues.
tential cryptocurrency integration but focused on X's ef-
forts to combat spam and scams. New legislation would rein
in 'shadow banking' system
Musk's interest in financial services dates back to 2000,
when he initially envisioned a more comprehensive prod- The bipartisan Close the Shadow Banking Loophole Act
uct than PayPal, which he co-founded and later sold to was introduced in the Senate to regulate nonbank finan-
eBay. In the past 14 months, X has obtained money trans- cial entities more like banks, preventing them from ben-
mitter licenses in 12 states. efiting from federal deposit insurance without approval
from the Federal Reserve. The bill, spearheaded by Sena-
tor Sherrod Brown, D-Ohio, and John Kennedy, R-Louisi-

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