Building on the incredible success of our Emerging Payment Systems series of conferences, and in response to demand from the market, American Conference Institute has developed the 7th National Forum on Balancing Innovation with Consumer Protections in Emerging Payment Systems. This conference will bring together an unparalleled faculty of in-house counsel and compliance professionals, senior executives from industry-leading companies, high-level regulatory and enforcement officials, and top outside counsel specializing in emerging payment systems who will provide you with the insights and tools necessary to navigate the legal, compliance, technical, and business hurdles arising from new payment products and technologies

1. Emerging Payment Systems
Dodd-Frank, the CFPB and FTC, the Durbin
Amendment, FinCEN Involvement, the Fed
and More:
Providing Legal Guidance in an Uncertain
Federal Regulatory Landscape for
Emerging Payment Systems
Thursday, September 27, 2012

2. Barrie VanBrackle, Partner
Manatt, Phelps & Phillips, LLP

3. Joseph P. Vitale
Partner
Schulte Roth & Zabel LLP
919 Third Avenue
New York, NY 10022
212.756.2485
joseph.vitale@srz.com

4. Jessica Drew
Senior Legal Counsel
MetaBank

5. Emerging Payment Systems
Lauren Saunders
Managing Attorney
National Consumer Law Center

6. FTC and Emerging Payments
James Chen
Division of Financial Practices
Federal Trade Commission

7. Interests of the developer of an
Emerging Payment Product
•
•
•
•
•
•
Data collection and retention;
Data usage;
Security assurance;
Privacy of member information...but
Maximum flexibility, in that...
Customer data is currency.
Barrie VanBrackle, Partner
Manatt, Phelps & Phillips, LLP

8. Emerging Payment Systems:
Considerations for Banks
Third-Party Risk Management:
• Front-End Due Diligence
• Policies and Procedures to Identify and Manage Strategic, Reputation,
Compliance, Transaction and Credit Risks
• Well-Constructed and Detailed Contract
• Robust Audit and Compliance Mechanisms
New Technologies, but Largely the Same Rules:
• AML/BSA/OFAC
• FFIEC Customer Authentication Guidelines
• Reg. E, EFTA (incl. new Int’l Remittance Rule)
• GLBA Privacy Rules
• ESign
• NACHA Rules or Check 21/Reg. CC/UCC (for RDC)
• State Laws governing Deposit-Taking and Money Transmission
Joseph P. Vitale

9. International Remittance Rule
The new Final Rule is available here:
http://files.consumerfinance.gov/f/201208_CFPB_remittance_rule.pdf

10. FTC & Emerging Payments
• FTC has jurisdiction over most businesses, with
limited exceptions
• Mission is to prevent and stop unfair or deceptive
practices
• Primary FTC concerns regarding payment systems
– Dispute resolution
– Data security
– Privacy
Federal Trade Commission

11. Principles for Fair and Safe Payment Systems
1.
2.
3.
4.
5.
Consumer can choose which system to use
Consumer understands the cost and terms
Funds are safe
Protection from errors, unauthorized transfers
Ample free access to account information
(customer service, statements, balances)
6. No unfair fees or tricks
7. No credit features embedded in deposit products
8. Privacy protection, security from predatory
products

12. What does the future hold?