America’s Credit Unions keeps credit unions informed with new posts on the Compliance Blog, published every Tuesday and Thursday.
Here’s a look at what’s new on the blog:
CFPB Proposes Rule to Prohibit NSF Fees for Instantaneous Transactions: Patricia O’Connell details the CFPB’s proposed rule to “prohibit covered financial institutions from charging nonsufficient funds (NSF) fees, when consumers initiate payment transactions that are declined ‘instantaneously or near-instantaneously.’” She notes that the proposed rule would prohibit financial institutions from charging fees for instantaneously declined transactions, regardless of transaction method. Comments to the bureau on the proposal are due March 25.
In the Crosshairs: Firearms Merchant Category Code: Nick St. John tackles recent developments of competing legislation regarding merchant category codes (MCCs) for firearms dealers. St. John writes that major card networks “announced they were pausing implementation of the firearms MCC, citing the uncertainty caused by the varying state-level approaches to the issue.” He points out that “some [peer-to-peer] platforms – like Zelle, Paypal, Venmo and others – prohibit the use of their platform to purchase firearms or ammunition,” adding that credit unions may want to ensure that the website is clear that peer-to-peer (P2P) terms and conditions were set by the P2P service and not by the credit union itself.