CFPB Proposes a Faster Payments System in America
The Consumer Financial Protection Bureau is proposing a new set of guidelines for faster payment systems in the United States. While financial institutions and payment processors work to reduce “pocket-to-pocket” payment times, the CFPB wants to ensure that the upgraded systems are “secure, transparent, accessible, and affordable to consumers.”
The main goal of the new regulations is to reduce the risk of fraud that consumers experience due to the delay between a credit card transaction and a company actually receiving funds from the account. This process can take several days to complete, and during that time, the consumer is exposed to potential threats from several different angles.
“Companies developing new financial technologies should be building systems from the outset with consumer protections in mind. It is a lot easier to build something right from the start than it is to retrofit it,” said CFPB Director Richard Cordray. “The CFPB will continue our work to help ensure that financial services marketplaces are safe and transparent for consumers.”
The CFPB is working with technology companies in the financial field to create real-time payment systems that eliminate the multi-day delay in transactions. The Bureau is using input from consumer groups, regulators and financial service providers to ensure that the new technology is focused on consumer safety and transparency. The Federal Reserve has also been brought in to regulate the changes in the payment systems and create the most secure platform possible.