​IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

​IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

​IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

If your LinkedIn feed is anything like mine, you’ve seen an uptick in people looking for jobs and companies announcing cuts.

These are likely reactions to uncertainties in the economy and the political landscape. The problem is that they are the wrong reaction.

My thinking on this is informed by my time at the Graduate School of Banking at the University of Wisconsin, Madison. I was invited to attend when I was a reporter for American Banker. (The industry wanted to make sure that the reporting covering it had some knowledge of how things worked.)

One of the professors castigated the students for having the instinct to cut every time there was a problem or downturn. As he put it, companies might save some money by making cuts, but they don’t earn returns. Companies earn returns by investing.

We can see the results of not investing in the payments industry when we read the consent orders that have been filed against issuing banks. They failed to invest in adequate and qualified staff to manage partners and programs. They failed to invest in adequate systems to manage risks, identify customers, or even maintain ledgers. They failed to invest in proper oversight of their partners.

Banks that want to be in the innovation business are going to need to think of themselves as investors in the fintech sector. The difference is that the investments they make will not be monetary investments in third party companies. Instead, the dollars will need to be spent on themselves for technology, for additional people, and for training the people they have.

Two challenges will face the institutions that do this.

First, they will need to develop a strategy that justifies a longer time horizon for return on investment. In a world dominated by quarterly earnings calls, this can be tough. But having a larger goal can help directors and investors follow the money.
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Second, they will need to get comfortable not following crowd and cutting when times are tight. It can be difficult to take a different path than colleagues and competitors. But innovation comes from finding opportunity where others see problems.

Earned Wage Access (EWA) is becoming more and more popular among employees and employers alike to provide financial flexibility and stability. EWA allows employees to access a portion of their earned wages before payday, helping them to cover unexpected expenses or bridge financial gaps without relying on high-interest payday loans or credit cards. 

While EWA can provide significant benefits to employees, it is essential for employers to ensure that they are implementing these programs in a compliant and responsible manner. Compliance with federal and state laws is crucial to protect both employees and employers from potential legal issues.  

One important aspect of compliance with EWA programs is ensuring that employees are informed about the terms and conditions of the program. Employers should clearly communicate how EWA works, including any fees or charges associated with accessing their wages early. Transparency is key to building trust and ensuring that employees understand their rights and responsibilities. 

In addition to transparency, employers must also ensure that their EWA programs comply with all relevant labor laws and regulations. This includes ensuring that employees are not being charged excessive fees for accessing their wages early and that the program does not violate any wage and hour laws. Employers should work closely with legal counsel to review their EWA programs and ensure that they are in compliance with all applicable laws. 

Furthermore, employers should also consider the potential impact of EWA programs on employees' overall financial well-being. While EWA can provide short-term financial relief, it is not a long-term solution to financial instability. Employers should encourage employees to use EWA responsibly and provide resources for financial education and counseling to help employees improve their financial literacy and management skills. 
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By ensuring compliance with laws and regulations, promoting transparency and responsible practices, and providing support for employees' financial well-being, employers can ensure that their EWA programs are a positive and valuable addition to their benefits offerings. Earned Wage Access can be a powerful tool for improving employee satisfaction and retention, but it is essential to implement these programs in a way that prioritizes compliance and responsible practices. ​

IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

​IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

Regulation E, also known as the Electronic Fund Transfer Act, is a federal regulation that governs electronic transfers of funds, such as ATM transactions, debit card transactions, and direct deposits. The Consumer Financial Protection Bureau (CFPB) is the primary enforcement agency for Regulation E, and it has been cracking down on violations in recent years. For companies in the payments industry, understanding and complying with Regulation E is crucial to avoid costly enforcement actions and penalties. 

CFPB Enforcement Actions 

The CFPB has taken enforcement actions against companies in the payments industry for various violations of Regulation E. These violations can include failing to provide consumers with required disclosures, improperly handling error resolution requests, and engaging in deceptive or unfair practices related to electronic fund transfers. In some cases, companies have been ordered to pay restitution to affected consumers and civil penalties to the CFPB. 

Compliance Tips for the Payments Industry 

To avoid running afoul of Regulation E and facing enforcement actions from the CFPB, companies in the payments industry should take the following compliance tips into consideration: 

• Provide Clear and Accurate Disclosures: Ensure that all disclosures related to electronic fund transfers are clear, accurate, and easily accessible to consumers. Disclosures should include information about fees, error resolution procedures, and consumer rights under Regulation E. 
• Establish Robust Error Resolution Procedures: Develop and implement procedures for handling consumer error resolution requests in accordance with Regulation E. This includes investigating errors promptly, correcting errors, and providing consumers with timely resolution and notification. 
• Monitor and Review Compliance Practices: Regularly review and update compliance practices to ensure that they are in line with Regulation E requirements. This may involve conducting internal audits, monitoring consumer complaints, and staying informed about regulatory updates. 
• Train Employees on Regulation E Compliance: Provide employees with training on Regulation E requirements, including how to handle electronic fund transfers, resolve errors, and provide disclosures to consumers. Employees should be knowledgeable about their responsibilities under Regulation E. 
• Maintain Documentation and Records: Keep detailed records of electronic fund transfers, disclosures, error resolution requests, and compliance efforts. Documentation can help demonstrate to regulators that your company is taking compliance with Regulation E seriously. 
  
  

By following these compliance tips, companies in the payments industry can navigate the complex regulatory landscape of Regulation E and minimize the risk of enforcement actions from the CFPB. Prioritizing compliance with Regulation E not only protects consumers but also safeguards your company's reputation and financial stability. ​

IPA Compliance Boot Camp: The IPA's Compliance Boot Camp in Chicago offers a unique opportunity to deep-dive into the latest regulations and trends. From hot topics like Open Banking and Earned Wage Access to the legal implications of AI and serving cannabis businesses, this one-day event is packed with insightful sessions led by industry experts. Don't miss this chance to gain the knowledge you need to thrive in today's dynamic market.

By Brian Tate
IPA President and CEO

Fraud and scam activity can happen to anyone. By anyone, I mean it always seems to happen to someone else, or in other words, someone you don’t know. I have worked in the financial services industry for over 20 years and I have given advice to countless people regarding how to protect oneself from fraud or what to do once a fraudulent act has occurred. Like most things, fraud hits a little differently when it is closer to home. 
 
Just a few days ago I learned that my mother was the victim of bank account fraud. We believe it may have been an account takeover or at the very least, someone who illegally obtained her personal credentials and instigated a couple of small financial transactions that I am sure were designed to see if it was possible to begin transferring money out of her account.  
 
The phony test transactions were successful and could have led to larger transactions that would have siphoned money out of her account. However, my retired senior citizen mother noticed. She noticed a suspicious fake email addressed from a friend asking for money, which led her to check her bank statement online. To her credit she immediately notified the bank that she noticed transactions that she did not authorize were on her statement. The bank conducted a brief investigation and returned her money. My mother was lucky and fortunate. 
 
Although my mother knows I work in the financial services community, I am pretty sure we have never had a conversation about what to do when fraud occurs. Nonetheless, she did all the right things any financial fraud professional would recommend. She regularly tracked her bank transactions and statements. Once she noticed suspicious activity, she moved quickly to tell her bank. Lastly, she has taken steps to open new accounts.  
 
There are a lot of senior citizens who are not as lucky or haven’t been that fortunate when it comes to scams or fraud. Fraudsters focus in on seniors for a wide variety of reasons – they tend to have money saved, they are trusting, and generally are not as knowledgeable about technology. Scams targeting senior citizens are unfortunately all too common and often can be devastating. 
 
I don’t want anyone to be a victim of fraud. But in the tech-based world we live in, I know most, if not all of us will be victims at some point. That does not mean we should just let it happen. There are steps we can all take to protect ourselves: 

• Verify Contacts: Always verify the legitimacy of any communication claiming to be from your bank or financial institution. Use contact information from official sources. 
• Educate Yourself: Stay informed about the latest scams targeting seniors and how to recognize them. 
• Secure Personal Information: Never give out personal information over the phone, through email, or online unless you initiated the contact and are sure of the recipient's identity. 
• Monitor Accounts: Regularly monitor your bank and credit card statements for any unauthorized transactions. 

 
Be Aware of the Different Types of Scams 

• Phishing Scams: Seniors may receive emails or phone calls pretending to be from their bank, asking for sensitive information like passwords or social security numbers. 
• Fake Check Scams: Fraudsters send fake checks to seniors, asking them to deposit the check and wire back a portion of the funds, leaving the senior responsible when the check bounces. 
• Identity Theft: Scammers steal seniors' personal information to open accounts or make purchases in their name. 
• Investment Scams: Seniors are often targeted with fake investment opportunities promising high returns. 

 
Red Flags 

• Pressure Tactics: Scammers often create a sense of urgency to rush seniors into deciding. 
• Unsolicited Contacts: Be cautious of unexpected emails, phone calls, or letters asking for personal information. 
• Too Good to Be True Offers: If an offer promises unusually high returns or benefits with little to no risk, it's likely a scam. 

 
What to Do if You're Targeted 
 
If you suspect a scam, report it to your bank, local law enforcement, and the Federal Trade Commission; find a list of resources on our consumer support page.