The Innovative Payments Association (IPA) has submitted a letter to the Consumer Financial Protection Bureau (CFPB) outlining recommendations to modernize regulations governing prepaid accounts and earned wage access (EWA). The letter responds to Executive Order 14405, which calls for streamlined regulation, reduced barriers to innovation, and greater collaboration between fintech companies, financial institutions, and regulators.

Modernizing Prepaid Account Rules

​The IPA is urging the CFPB to revisit the Prepaid Account Final Rule, which has been in effect since 2019. While supporting strong consumer protections, the IPA argues that the current framework creates unnecessary compliance burdens and puts prepaid products at a disadvantage compared with similar financial products.
The association recommends streamlining disclosure requirements and creating greater regulatory parity between prepaid and traditional debit accounts, particularly around access to credit and overdraft services.

Providing Clarity for Earned Wage Access

The IPA also calls for greater federal regulatory clarity for EWA. While the IPA supported the CFPB's December 2025 Advisory Opinion addressing certain EWA products, it believes the opinion does not adequately address the broader range of models operating in today's market.

The IPA recommends an updated framework that provides consistent treatment across EWA models, supports innovation and competition, and maintains appropriate consumer protections.

Download the letter for full information, including the IPA's detailed recommendations and supporting analysis.

The payments industry is closely watching a recent proposal from the Office of the Comptroller of the Currency (OCC) that could have significant implications for banks, payment providers, merchants, and consumers nationwide. The OCC has proposed clarifying that national banks and federal savings associations retain the authority to assess non-interest charges and fees, including interchange fees, and that certain provisions of Illinois' Interchange Fee Prohibition Act (IFPA) are preempted by federal law.

The Innovative Payments Association (IPA) recently submitted comments supporting the OCC's proposals, highlighting concerns that state-level restrictions on interchange fees and payment data usage could create operational challenges across the payments ecosystem. The association noted that many modern financial products and services rely on a seamless, nationwide payments infrastructure supported by consistent regulatory standards.
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Beyond Illinois, similar legislative efforts are emerging in other states, raising broader questions about how the U.S. payments system can continue to operate efficiently if differing state requirements begin to govern core payment functions. A fragmented regulatory framework could increase complexity for financial institutions and payment providers while potentially impacting the products and services consumers rely on every day.

The IPA believes the OCC's action provides important clarity for the industry and helps maintain the uniform national framework that supports secure, reliable, and widely accepted electronic payments. As policymakers continue to debate the future of interchange regulation, these issues will remain critical to the stability and efficiency of the payments ecosystem.

For additional details and the IPA's full analysis, download and read the complete comment letter.

The Innovative Payments Association (IPA) is voicing support for H.R. 4801, the Unleashing AI Innovation in Financial Services Act, legislation aimed at giving financial services companies more room to responsibly test and implement artificial intelligence technologies. In a letter sent to House Financial Services Committee Chairman French Hill, the IPA emphasized that AI is already playing a valuable role across the payments ecosystem, particularly in areas like fraud prevention and operational efficiency.

According to the letter, the bill would create a framework that allows companies to work directly with federal regulators while experimenting with new AI-driven products and services. The IPA argues this approach would help strike the right balance between innovation, consumer protection, and safety and soundness standards across the financial system.

The association also noted that the legislation aligns with broader national efforts to accelerate responsible AI adoption in the United States. As policymakers and regulators continue debating the future of AI oversight, proposals like H.R. 4801 could shape how emerging technologies are integrated into banking, payments, and fintech innovation in the years ahead.

The IPA’s message underscores a growing industry view that collaboration between regulators and innovators will be essential as AI capabilities evolve. The organization encouraged lawmakers to advance the bill and continue supporting policies that foster innovation while maintaining strong consumer protections.
For more information and to read the full letter, download the IPA’s official submission to the House Financial Services Committee.

As artificial intelligence continues to reshape the financial services landscape, policymakers are increasingly focused on how to foster innovation while maintaining strong consumer protections. In a recent comment letter to the House Financial Services Committee, the Innovative Payments Association (IPA) expressed its support for H.R. 4801, the Unleashing AI Innovation in Financial Services Act.

The letter highlights how AI is already playing a meaningful role across the industry, particularly in areas like fraud prevention, and underscores the significant potential for future applications. As new technologies emerge, financial institutions are looking for clear pathways to responsibly test and deploy these tools without facing unnecessary regulatory barriers.

H.R. 4801 aims to strike that balance by creating a framework that allows companies to experiment with AI in coordination with key federal regulators. By enabling collaboration with agencies such as the FDIC, OCC, and CFPB, the legislation would support innovation while maintaining appropriate oversight and safeguards.

The IPA emphasizes that thoughtful integration of AI can strengthen the financial ecosystem, which enhances services, improving security, and delivering better outcomes for consumers. The association encourages lawmakers to advance the bill as part of a broader effort to ensure the U.S. remains competitive in the global AI landscape.

The Innovative Payments Association (IPA) recently submitted a comment letter to the Federal Reserve in response to its Request for Information on the future of the Federal Reserve Banks’ check services. As policymakers consider how the payments system should evolve, the IPA emphasized the importance of prioritizing secure, efficient electronic payment options over continued reliance on paper checks.

In the letter, the IPA notes that electronic payment methods, including prepaid accounts, mobile wallets, and other digital payment products, offer stronger consumer protections and greater efficiency than traditional paper checks. These products are typically governed by federal consumer protection rules, provide error resolution and limited liability protections, and operate within regulated banking and anti-money laundering frameworks.

The IPA also highlighted the role electronic payments play in expanding financial access. Government agencies increasingly use digital and prepaid payment options to distribute benefits such as Social Security, unemployment insurance, and tax refunds. These tools help reach unbanked and underbanked consumers while reducing administrative costs and fraud risks associated with mailed checks.

​As the Federal Reserve evaluates the future of its check services, the IPA urged the Board to carefully consider the benefits of modern electronic payment systems and to conduct a transparent review of how payment infrastructure should evolve.