Category: Payments

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MTA Cleanup

contract-iconCalifornia’s Money Transmission Act (Cal Fin Code Section 2000 et seq.) underwent another facelift this year.  AB 2209‘s changes were signed by Governor Brown last month, and will go into effect January 1, 2015.

Some key changes & clarifications:

1.  A Big One: Exemption for an “Agent of Payee”

“Section 2010 (l) A transaction in which the recipient of the money or other monetary value is an agent of the payee pursuant to a preexisting written contract and delivery of the money or other monetary value to the agent satisfies the payor’s obligation to the payee.”

2.  Reports required if money transmission was made by mobile device or other electronic application

Licensees must also report whether money transmission activity was made via mobile or other electronic application in addition to other reporting requirements, such as transaction volume, etc.

3.  Changes to various disclosure, notice and receipt requirements for transactions made via the web or on mobile devices.

 

 

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Bad News for Banks?

bankThere were two big announcements in September that seemingly added to the dour outlook for banks:  Apple Pay and Walmart’s Checking Accounts.  But, despite previous headlines about new financial service products and services putting an end to banks, the prospect that banks are to become obsolete will not come true–at least not in the near future.  The outlook instead seems that the bigger fish will continue to play a big part in everyone’s everyday financial doings.

For example, Apple Pay has teamed up with some big players: AmEx, BofA, Wells, Chase.  Bank of America and Wells Fargo can tout they are providing easier access for its customers, without having to reinvent the wheel themselves.  A win-win for big banks.

A prepaid card leader, Green Dot, made a huge splash last week with the announcement of another partnership with Walmart–checking accounts.  Walmart ditched their efforts to become bankers bank in 2007.  Instead, they brought on the Walmart Money Card and American Express’ Bluebird, offer the ability to quickly reload a variety of prepaid cards with Rapid Reload, check cashing, bill pay, money orders–giving their customers the ability to take care of all their banking needs in-store–without holding a bank charter themselves.  Another win for this big-box retailer, and a growing leader in “alternative” banking.

 

 

 

 

 

 

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Payments for Parents

billpayimgI thought I was finished with my checkbook.  But, I have discovered that having a school aged child has brought many required a multitude of off-line payments: class fieldtrips, sports teams, lessons, babysitters.  This is coupled with the need to make a payment accepted by most, preferably off-line.  Which places me in a position to pay by paper check (!!) as I rarely carry enough cash to make a payment. This is kind of embarrassing given the line of work I am in, so I have tried to look into other options that might be easily adopted by others to move money to a variety of individuals: teachers, parent groups, individual parents, coaches, and small organizations.

What options are there right now?

Square Cash:  Square allows you to send and receive a payment if you have A) an email address and B) a debit card linked to a bank account.  There are no fees to send or receive a payment.  Payments are processed within 2 business days.  Payments over $250 will require additional identification.  *One caveat, if you are a resident of Hawaii, you’re out of luck.  You can’t use Square Cash.

Google Wallet via Gmail: Google Wallet’s P2P service requires a gmail address (although you will be required to login with a Google Wallet Account).  Google Wallet provides more funding sources (credit/debit/prepaid card/bank account).  There is a fee of 2.9% the transaction amount for the sender and the receiver if the funding source is a credit card or a debit card (not if it’s from a bank account).  Payments are processed up to 3 business days.  You may be required to additional information based on the funding source (SSN, address, all that KYC stuff)

Of course, there’s PayPal (but interestingly, I’ve never been asked to make a payment using PayPal in my parental capacity–why is this?), or prepaid cards to pay a babysitter (not exactly convenient). But, realistically, it seems like none of these newer payment methods will take off unless most people will be required to pay a fee to deposit a check or cash.

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New Developments for Song-Beverly

data-breach1A couple notable developments on California’s Song-Beverly Credit Card Act, which limits retailers from collecting certain types of personal information from its customers.

California’s SB 383 (Jackson) passed the Senate earlier this year, which addresses the Apple v. Superior Court decision.  This bill would extend Song-Beverly protections to online retailers and prohibit them from collecting certain types of personal information when consumers purchase “electronically downloadable content” unless for fraud detection and prevention purposes.  A pretty narrow bill, to address a pretty narrow ruling.

Consumers can’t be required to provide their email addresses, unless for an “incidental but related purpose,” when shopping at a brick and mortar store any longer, a result of Capp v. Nordstrom.

Why might might consumers be spooked about giving out their email addresses or zip codes at the point of sale?  If you haven’t read this article in Forbes, it explains why very simply.

Not Song-Beverly related, but more in following up on data breaches and their aftermath as some consumers try to figure out how to dig out from identity theft or try to keep their financial lives from being wrecked.  Brian Krebs has confirmed that credit monitoring services are not helpful in his recent post, “Are Credit Monitoring Services Worth It.”

 

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Bitcoin Roundup

DIGSOUTH_ShaneSnowQA_042913There is SO much dialogue around digital currencies/virtual currencies/cryptocurrencies, of which Bitcoin is front and center. Here are a few articles I’ve found particularly interesting:

1.  A VC’s perspective: Why Bitcoin Matters – Marc Andreesen’s NYT Op Ed

2.  What’s new in the regulatory world stateside: New York Regulators Promise Tough Bitcoin Rules – Bloomberg

3.  New currency meets old hardware (Bitcoin ATMs): Bitcoin ATM coming to the U.S. -CNN

4.  Bitcoin is not immune to hackers: Bitcoin Exchange Mt.Gox Apologies About Crippling Hack – Reuters

And, I saved my favorite for last:

5.  Follow Bitcoin’s ups and downs with PYMTS’ Bitcoin Bubble Tracker.