Guidance on Overdraft Protection Practices

The FDIC, OCC and Federal Reserve have recently issued guidance on overdraft protection program practices, risk management, and representment. 

FDIC: Supervisory Guidance on Multiple Re-Presentment NSF Fees

OCC: Overdraft Protection Programs: Risk Management Practices

Federal Reserve: Supervisory Observations on Representment Fees

Also see The Gold Book for continuing updates:

Checking Accounts: Overdraft Protection Programs

Electronic Collection of Fees

What's New? Prepaid Accounts Rule

Revised interagency examination procedures for Regulation E, Regulation Z and Regulation X were released. These procedures relate to the creation of comprehensive consumer protections for prepaid accounts. 

A prepaid account, (also called a prepaid card or a stored-value card) is a payment card with a monetary value stored on the card itself, not in an external account maintained by a financial institution. This means no network access is required by the payment collection terminals as funds can be withdrawn and deposited straight from the card.

See The Gold Book for more information. 

What's New? Reclamation of Federal Benefits

The Preauthorized Electronc Transfer chapter of The Gold Book has been updated to include information pertaining to the reclamation of federal benefits.

Reclamation is a procedure used by the Federal government (government) to recover benefitpayments made through the Automated Clearing House (ACH) to the account of a recipient who died or became legally incapacitated or a beneficiary who died before the date of the payment(s).

What's New? Chip Card POS Technology

Most credit card issuers in the United States and over 80 countries worldwide have adopted chip card technology, also known as EMV (Europay, MasterCard and Visa). 

Beginning today, banks and other card issuers may be liable for fraudulant credit or debit card activity if this technology has not been adopted. 

Read more in The Gold Book.

What's New? ATM Safety Act Compliance Reporting

A permanent rule effective October 1, 2014 requires ATM Safety Act electronic compliance reporting by financial institutions on a semi-annual basis. See The Gold Book, ATM Safety Act and Annual Report of Compliance. 

What's New? NYS ATM Security Rules

On July 1, 2014, institutions were sent a letter from the Department of Financial Services regarding their July and January 15th reporting dates for compliance with the ATM Safety Act.  Superintendent's Regulation Part 301.6 accompanied that letter and contains the form that must be completed by those dates. Please see New York State ATM Safety Act for information on this new reporting requirement.

What's New? Foreign Remittance Rules

The CFPB recently issued version 2.0 of its compliance guide to revise several requirements relating to the disclosure of institution fees and error resolution. All remittance transfer providers must comply with the new rules by October 28, 2013. The guide may be found here: http://files.consumerfinance.gov/f/201308_cfpb_intl-money-transfer-entity-compliance-guide.pdf. Also see The Gold Book section, Foreign Remittances for details.

What's New? Payroll Card Accounts

The Consumer Financial Protection Bureau (CFPB) recently issued information regarding payroll card accounts. See Payroll Cards for details. 

New Remittance Rules

The Consumer Financial Protection Bureau has released new rules pertaining to the Remittance Rule under Regulation E, scheduled to take effect on October 28, 2013. For more information click here to see the International Fund Transfers Small Entity Compliance Guide v2.0 issued on August 8. 2013.

What's New? NYS Preauthorized EFT Law

On August 17, 2012, Governor Cuomo signed S.219-A / A978, which became Chapter 403 of the laws of 2012.  The new law amends Banking Law section 9-s regarding stop payments of electronic funds transfers (the New York version of the Electronic Funds Transfer Act.)

Text in The Gold Book addressing New York rules for stopping payment on preauthorized electronic transfers have been updated in the Compliance and Electronic Banking chapters.