The Consumer Financial Protection Bureau proposed an interpretive rule classifying paycheck advances and earned wage access (EWA) products as consumer loans. According to the CFPB, employees take an average of 27 employer-sponsored paycheck advance loans each year, and these loans carry an average annual percentage rate of 109.5%. Under the new rule, paycheck advance lenders will have to disclose fees and rate information. Read more: https://ow.ly/Rmlx50SGip9 #payments #EWA #earnedwageaccess #paycheckadvances
PaymentsJournal
Financial Services
Livonia, MI 17,288 followers
PaymentsJournal is a free online information portal designed to keep payments & banking industry professionals informed.
About us
PaymentsJournal provides the latest insights on the trends shaping the payments space. A division of Javelin Strategy & Research, PaymentsJournal monitors the payments, banking, and fintech industries, covering topics such as credit, debit, cryptocurrency, buy now, pay later (BNPL), and more.
- Website
-
http://paymentsjournal.com
External link for PaymentsJournal
- Industry
- Financial Services
- Company size
- 11-50 employees
- Headquarters
- Livonia, MI
- Type
- Partnership
Locations
-
Primary
17430 College Pkwy
Livonia, MI 48152, US
Employees at PaymentsJournal
Updates
-
British interbank payments service CHAPS (Clearing House Automated Payment System) experienced another glitch on Thursday, delaying many high-value, time-sensitive payments. Although the cause of the slowdown is not yet clear, it is not being treated as a hacking incident. Operated by the Bank of England, CHAPS is one of the largest high-value payment systems in the world. Some of its main functions include facilitating the settlement of money market and foreign exchange transactions for some of the UK’s largest FIs and businesses. Read more: https://ow.ly/BEhL50SGifX #payments #CHAPS #hacking
CHAPS Endures Another Hiccup
https://www.paymentsjournal.com
-
Listen to the FULL PODCAST: https://lnkd.in/edvb53hc Criminals are becoming more sophisticated every day. They use technologies like ChatGPT to create more convincing phony emails and voiceover deepfakes to trick finance offices. Business email compromise is on the rise, causing losses of over $300 million per month. “It’s hard for organizations to stay above water because fraudsters are always one step ahead,” Ryan Clayton, Director of Solution Consulting at Bottomline said. “It’s under any and every vertical, all industries are under attack. Public entities like higher education institutions, healthcare facilities, and government agencies are at higher risk because their data is much more readily available. But fraud is everywhere. #payments #fraud #fraudmitigation #fraudprevention #technology
-
July 20, 1969, marked the day when human beings first set foot on the moon, forever changing how we viewed the world beyond us. It’s also the date in 2023 when the Federal Reserve launched its FedNow instant payments service. Although the impact has not been nearly as epochal as the moon landing, FedNow has met expectations in its first year of operation. It will likely take just one major use case or disruptive event to make the service a regular part of life. Read more: https://ow.ly/5J5j50SG4tE #payments #instantpayments #FedNow #realtimepayments #RTP
One Year On, FedNow Is Still Waiting for Its Critical Moment
https://www.paymentsjournal.com
-
The Consumer Financial Protection Bureau proposed an interpretive rule classifying paycheck advances and earned wage access (EWA) products as consumer loans. According to the CFPB, employees take an average of 27 employer-sponsored paycheck advance loans each year, and these loans carry an average annual percentage rate of 109.5%. Under the new rule, paycheck advance lenders will have to disclose their fees and rate information like other consumer lenders. Read more: https://ow.ly/6FL550SFtOv #payments #paycheckadvance #earnedwageaccess #EWA #fees
Paycheck Advances Should be Considered Loans, Says CFPB
https://www.paymentsjournal.com
-
The hospitality industry faces challenges in achieving efficiency and security across a wide array of payments issues due to fragmented systems. Many enterprise restaurant and hospitality brands rely on a patchwork of independent payment and point-of-sale systems to manage payment options and currencies, all while trying to maintain data security. Read more: https://ow.ly/U58s50SFtze #payments #hospitality #data #security #fraud
Siloed Payment Systems Cause Issues for Hospitality Industry
https://www.paymentsjournal.com
-
For FIs and merchants, DCC brings several advantages. It can lead to higher transaction volumes as customers are more likely to use services that offer transparency and convenience. Moreover, FIs and merchants can find additional revenue streams through better exchange rate margins and increased usage of ATMs and POS terminals. Euronet recently noticed an emerging trend after reviewing reports with one of their clients. They noticed a significant number of exchanges involving the Australian dollar in a particular area with a large Australian population. Euronet notified the bank, which then notified their merchants. Read more: https://ow.ly/FOMI50SFmvz #payments #currency #DCC #travel
Reinventing Currency Exchange for Global Travelers
https://www.paymentsjournal.com
-
The digital twin approach won’t solve every issue of an outdated core banking system because it’s not a replacement. It does, however, offer financial institutions significant immediate benefits. It takes the load off a bank’s core systems and makes them a stable, secure environment for maintaining balances. The digital twin approach also gives institutions a foundation from which to build. Payments and financial services continue to evolve through new technologies like real-time payment rails and artificial intelligence tools. Read more: https://ow.ly/6zGk50SFmke #payments #instantpayments #API #cloud #modernization
A New Way Forward: Taking a Digital Twin Approach to Payments Modernization
https://www.paymentsjournal.com
-
The New York Federal Reserve receives quarterly reports from the major credit bureaus, allowing it to monitor the state of U.S. credit card debt. Though many Americans are using BNPL services in lieu of credit cards, BNPL companies are not required to report data on their loans. Around 25% of U.S. consumers used BNPL in the past year, a number expected to rise. With both fintech startups and established banks rolling out new “Pay by X” plans, there are growing concerns about the amount of “phantom debt” that is starting to snowball. Read more: https://ow.ly/gikU50SFgm7 #payments #credit #BNPL#debt
BNPL “Phantom Debt” is Concerning, but Not Economy-Shattering
-
With the release of its Q2 earnings, Bank of America announced that its provision for credit losses and charge-offs grew to $1.5 billion, an increase from the previous quarter’s total of $1.3 billion. According to the company, net charge-offs—money the bank writes off and doesn’t expect to be paid back—nearly doubled to $1.5 billion from $869 million in the previous year. JPMorganChase made a similar disclosure last week during its Q2 results. Its credit loss provisions rose to $3.05 billion for the quarter, up from $1.88 billion in Q1. Read more: https://ow.ly/xN1650SEHJn #payments #credit #creditloss #chargeoffs
Big Banks Continue to Increase Credit Loss Provisions
https://www.paymentsjournal.com