Legal and Regulatory Developments

SPOTLIGHT: D.C. Bill Latest Attempt to Nix Credit Card Swipe Fees on Tips and Taxes
Forbes – May 2, 2025

A Washington D.C. bill is the latest to hit back at credit card swipe fees. The Fair Swipe Act of 2025, introduced by D.C. Councilmember Charles Allen, would prevent banks and credit card companies from collecting processing fees on sales tax and gratuities—charges that businesses don’t even keep.

Increasingly, Americans like reaching for plastic to pay bills. A study by the Federal Reserve Bank of Atlanta indicated that, as a share of all payments by number—including bills, purchases, and person-to-person (P2P) payments, made in person or remotely—more were made by credit card (32%) than other forms of payment (debit cards came in second at 30%).

While shoppers and bill payers love the convenience of credit cards, they aren’t fans of the associated fees and costs. Neither are businesses. According to National Retail Federation Senior Vice President for Government Relations David French, swipe fees are one of retailers’ highest operating expenses. . . .

Trump’s CFPB Drops Enforcement of Buy Now, pay Later Rule in Latest Rollback of Consumer Protections
CNBC – May 6, 2025

For the third time under President Donald Trump, the Consumer Financial Protection Bureau has pulled back from enforcing a key rule, this time targeting buy now, pay later services.

The CFPB said in a notice on Tuesday that it will not prioritize enforcement of a rule, established during Joe Biden’s presidency, that classified BNPL providers as credit card issuers subject to the Truth in Lending Act. Fintech lenders had been required to comply with more stringent consumer protections, including standardized disclosures, refund processing and formal dispute investigations.

Affirm and other BNPL firms had voiced opposition to the billing statement requirement, arguing that it would confuse users and add unnecessary friction. . . .

Planned Crypto Hearing in U.S. House Derailed by Democrat Revolt
CoinDesk – May 6, 2025

In what was meant to be a U.S. House of Representatives hearing to examine and push forward a bill to establish crypto market structure policies, Democrats and Republicans clashed over President Donald Trump’s crypto ties and split into two separate discussions.

The Democrats labeled Trump’s digital assets business interests as corrupt and held a discussion in a separate room examining those conflict-of-interest accusations while the original hearing technically became a roundtable on crypto policy. . . .

Virginia Consumers Will Soon See Less Junk Fees, Which Add Money to Purchase Costs
Brunswick Times-Gazette – May 5, 2025

Virginia consumers should see less hidden fees on the purchase price of certain items, starting in July.

Gov. Glenn Youngkin on May 2, 2025 approved twin bills from the Virginia House and Senate that update the Virginia Consumer Protection Act and will force certain businesses to disclose the total price of services and products before a purchase.

Hidden fees and surcharges often tacked on near the end of a purchase will become a more clear part of the advertised price, according to the legislation. . . .

Why the Senate Crypto Bill Is in Turmoil
Politico – May 4, 2025

The Senate is entering a sudden cryptocurrency policy scramble, with one of President Donald Trump’s legislative priorities on the line.

Bipartisan talks over a landmark crypto bill have hit an unexpected roadblock, after nine key Senate Democrats on Saturday said they wouldn’t support revisions that GOP lawmakers unveiled last week. The bill would create the first-ever federal regulatory framework for so-called stablecoins that are pegged to the value of the dollar. Setting up crypto-friendly regulations for stablecoins and other digital tokens is a priority of Trump’s financial policy agenda.

The Democrats’ concerns — including from some who supported an earlier version of the bill in committee — had been festering for days behind the scenes, according to more than half a dozen aides and lobbyists granted anonymity to relay sensitive details of the negotiations. . . .

CFPB Plans to Revisit Open Banking Rule Despite Staff Cuts
Bloomberg Law – May 4, 2025

The Trump administration is poised to reopen a Biden-era rule allowing customers to share their sensitive bank data with third-party fintechs and potentially vacate it, according to multiple sources.

The Consumer Financial Protection Bureau is leaning toward reworking its open banking rule, which allows customers to share their deposit account and credit card information with fintechs, such as online investment company Betterment or PayPal Holdings Inc.’s Venmo service, the sources told Bloomberg Law.

The CFPB will likely reopen the rule amid requests from banks about potential liability for data breaches and the ability to charge for access to data, according to a source familiar with the matter who wasn’t authorized to speak publicly. Banks also want to be able to block companies that abuse their access to customer data from the open banking system, the source said. . . .

Charging a Separate Tariff Fee May Backfire for Retailers
Law360 – April 30, 2025 (subscription required)

In the wake of the Trump administration’s newly imposed tariffs, many retailers are facing significant unanticipated cost increases across their supply chains, from raw materials to manufacturing, to transporting goods manufactured abroad to the U.S.

As they search for ways to offset these costs, many may be considering adding a so-called tariff fee to their prices — i.e., a certain dollar amount or percentage surcharge added at checkout, along with an explanation for the reason behind the addition.

At first blush, this may seem like a good solution: If implemented, it seemingly allows retailers to avoid raising prices and preserve goodwill with customers while also cushioning the effect of a spike in costs on the bottom line. However, as discussed below, this strategy carries significant risks of state enforcement and consumer class actions and potentially violates the laws of several states, including California. . . .

Industry Developments

SPOTLIGHT: Visa Pursues Stablecoins for Cross-Border Payments
Payments Dive – May 6, 2025

Visa is locking arms with a pack of fintechs as it pursues development of stablecoin payments for cross-border transactions.

Over the past week, the largest U.S. card network disclosed working with digital payments upstart Stripe’s stablecoin orchestration unit Bridge to enable payments in Latin America. It also struck up partnerships with stablecoin companies Baanx and Rain to facilitate disbursements, commerce and financial services.

Stablecoins are cryptocurrencies tied to fixed values, like fiat currencies, and therefore they’re considered a steadier store of value than crypto coins such as bitcoin. . . .

Samsung Wallet Will Let You Send Money to Other Phones and Cards
The Verge – May 6, 2025

Samsung is making it easier for Galaxy phone users to quickly send money to friends and family. A contactless Tap to Transfer feature will be available for Samsung Wallet users in the US “later this month” that allows users to directly pay into someone else’s bank account without using third-party services like Venmo or Cash App.

The new peer-to-peer payment feature can transfer money from Visa or Mastercard debit cards stored within Samsung Wallet, using NFC to connect with the debit card in a recipient’s wallet app. Because the feature works by connecting to the card itself, it will work with any digital wallet — not just other Samsung Wallet users. The feature can also transfer directly to a physical debit card if the recipient doesn’t have a wallet app, provided the card’s chip supports tap-to-pay.

Sending money directly to debit cards is easier than requiring everyone to have the same third-party payment apps installed on their devices, and removes the need to wait for a traditional bank transfer. . . .

Crypto Operators Keep Chipping Away at a Merchant Acceptance Barrier
Digital Transactions News – May 2, 2025

Cryptocurrency remains far from mainstream payments, but it keeps edging closer in the United States and worldwide. Further evidence emerged early Friday with news that the money-transfer platform MoneyGram International Inc. has launched MoneyGram Ramps, an application programming interface aimed at easing crypto-based transfers.

Simultaneously, a crypto app called Bitget Wallet announced merchants will be able to accept stablecoin transactions through a new integration by the company with Paydify, a payment gateway specializing in cryptocurrency.

Stablecoins are digital currency whose value is tied to a national fiat currency, such as the U.S. dollar. The new MoneyGram service relies on the USDC coin from Circle Internet Financial and the Stellar blockchain, and does not require users to have a bank account to collect or deposit funds at MoneyGram stores. . . .

Walmart Drives Toward Instant Payments
Payments Dive – May 1, 2025

Walmart, the biggest U.S. retail chain, is increasingly eager to offer its customers instant payment options as it seeks to speed up services and keep costs low.

The Bentonville, Arkansas-based retailer has also long been intent on finding ways to avoid interchange fees incurred every time a customer uses a credit or debit card. Last September, Walmart said it would begin offering customers a pay-by-bank option to avoid those fees, ultimately with a real-time option.

While the retailer said last year that the instant option might be available this year, it could take longer, based on comments from a Walmart executive this week at Nacha’s Smarter Faster Payments conference in New Orleans. . . .

The Turned-on Wallet
Digital Transactions Magazine – May 1, 2025

Digital wallets have been around in the U.S. market for about 10 years, yet they still may not be used by everyone for in-store and online purchases. But ignoring their use—or not anticipating their increased use—could be problematic for many.

Last year, digital wallets comprised 39% of U.S. e-commerce transaction value and 16% of transactions completed at the point of sale, according to the 2025 edition of the Worldpay Global Payments Report, now in its 10th year. By 2030, Worldpay forecasts U.S. digital wallets will account for 52% of e-commerce and 30% of point-of-sale transactions.

“There’s plenty of room for digital wallets to grow. With payment fraud and scams-related losses continuing to increase, digital wallets’ advanced security features, such as encryption and tokenization, safeguard user information and reduce the risk of fraud,” says Guru Sahajpal, assistant vice president of banking and financial services at Cognizant Technology Solutions Corp., a Teaneck, N.J.-based technology-consulting and -outsourcing provider. . . .

Read Payments News Update – May 9, 2025 at constantinecannon.com