Regulators may strike fear into the heart of industry stakeholders, but regulation also can help spur innovation. A good example of this is remittances.
The Consumer Financial Protection Bureau earlier this year published a final rule to implement section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule requires remittance transfer providers to change their practices, such as full fee disclosure at the point of, and time of, origination; guarantee of amount of final funds delivered, to be delivered at time of origination; guarantee on when funds will be received; and right to cancel a transaction up to 30 minutes after its submission.
FIS’ recent announcement of its PayNet product leverages the company’s response to supporting these new requirements as a decision driver for the strategy.
Designed with Dodd-Frank in mind, PayNet includes items such as the right to cancel a transaction up to 30 minutes after transmission and full fee disclosure at the point and time of origination. Currently in its initial rollout stage with 200 financial institutions, PayNet is expected to be available industry-wide in early 2013.
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