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NewsBriefs

This article contains excerpts from news stories recently posted under proceed with supervising tech giants' payment services
Breaking Industry News on our homepage. For links to these and other to ensure consumer protection against fraud and errors.
full news stories, please visit www.greensheet.com/breakingnews. Meanwhile, House Republicans led by Representative
php. Patrick McHenry demand the proposal's withdrawal or
an extended public comment period, arguing its proposal
exceeds the CFPB's regulatory mandate. The plan targets
major tech firms like Amazon, Apple and Google, requir-
ing them to adhere to banking regulations for consumer
protection that financial institutions are required to fol-
low. The Senate Banking Committee, led by Senator Sher-
rod Brown, supports the CFPB's initiative, citing consum-
er security concerns.

FPC study highlights faster payment fraud The CFPB approach stands in stark contrast with opinions
expressed by EU policymakers, who have expressed few
The U.S. Faster Payments Council, in collaboration with concerns about consumer protections and financial stabil-
the FPC’s Fraud Work Group and Verafin, released Fraud ity when it comes to big tech firms' subsidiaries providing
Trends and Mitigation Opportunities, a report urging in- digital payment services. Amid this, industry stakehold-
creased efforts to combat faster payments exploitation. ers in the United Stated seek clarification and engagement
The report focused on threat detection and prevention from the CFPB regarding the proposed rules.
and called for industry-wide collaboration to strengthen
defenses against fraud. The report identified authorized Small, midsize merchants downgrade PSP ratings
push payment (APP) fraud as a major concern and recom-
mended enhanced education and awareness alongside im- J.D. Power's 2024 U.S. Merchant Services Satisfaction Study
proved business workflows. revealed heightened dissatisfaction among small and
midsize merchants with their service providers. The re-
Previous research by the FPC linked faster payments to port noted contrasting satisfaction levels between innova-
various financial crimes, prompting calls for technical and tors embracing alternative payments and traditionalists
behavioral controls. Significant gaps in fraud detection focused on credit and debit transactions. Emerging pay-
and mitigation were identified, including fragmentation ment methods like buy now, pay later (BNPL) and pay by
and limited information sharing. Researchers emphasized bank garnered higher satisfaction than traditional card
the need for unified action to safeguard the payments processing. Survey respondents expressed concerns over
ecosystem and called for improved fraud prevention pro- delays in funding, fees and fraud management, urging for
cesses and enhanced information sharing practices among improved credit and debit experiences and innovative so-
industry stakeholders. lutions.
Gift, loyalty, rewards soar in 2024 The study detailed aspects of the divide between inno-

Recent developments in gift, loyalty and rewards pro- vators and traditionalists, with higher overall satisfac-
grams signal their increasing prominence in consumer tion among the former. Key recommendations included
addressing barriers to risk management and fraud pre-
transactions. Examples include Blackhawk Network's plan
to acquire Tango Card, and Factor4 and LMS-POS integra- vention. The study, conducted between September and
November 2023, surveyed 5,383 SMB merchants that pro-
tion to facilitate gift card transactions. Studies by Runa
and i2C Inc. highlight consumer preferences for flexible cessed with 19 primary payment processors. Shopify re-
ceived the highest satisfaction ranking, followed by Pay-
spending options and personalized programs. The 2024
State of Merchant Branded Payments report underscores the safe and Bank of America.
value consumers place on digital balances usable across Reduced debit caps bad for banks, consumers
multiple merchants.
The Federal Reserve Board's proposed slash in allowable
The Credit Economy: The Role of Reward Programs in Consum- debit card interchange could cost consumers upwards of
er Credit Usage revealed Gen Z's preference for nontradi- $2 billion, as outlined in a white paper authored by Nick
tional rewards over cashback programs, emphasizing the Bourke, former director of consumer finance at The Pew
need for tailored rewards offerings. Consumers across de- Charitable Trusts, with support from the Consumer Bank-
mographics show high interest in rewards programs, with ers Association. Drawing on previous research on the
Gen Z favoring mobile app delivery. Durbin Amendment, which implemented debit card in-
terchange caps, the paper highlights potential impacts on
Controversy over P2P payment oversight consumer costs if the proposal is finalized. The initial cap,
set in 2011, resulted in covered issuers losing an estimated
Capitol Hill is divided over the Consumer Financial $5.5 billion annually in debit card interchange.
Protection Bureau's plan to regulate big tech companies'
payment activities. Senate Democrats urge the CFPB to

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