Company to Help FIs Meet Challenges of DFS1073 Around Consumer Initiated International Payments
London, UK, 15th August 2012 - Earthport, a leading provider of cross-border payments services, announced today the Company’s plans to enhance its cross-border payments service to address the transparency and predictability outlined by Dodd-Frank Section 1073 (‘DFS1073’). Earthport’s highly transparent cross-border payments service will be enhanced to address the specific requirements outlined in the regulation.
DFS1073 seeks to protect and inform consumers by providing greater transparency and predictability relating to the cost and delivery of international payments. Based on DFS1073, international transfers from individuals in the United States are subject to clear and conspicuous disclosures about the cost of a transfer, the amount of currency to be delivered to the recipient and the date the funds will become available.
In support of the new regulation, Earthport recently hosted a webinar, conducted with Pymnts.com to provide insight into the challenges and issues surrounding DFS1073. The webinar discussed how the new regulations will impact the cross-border consumer payments market, including the institutions serving this business, and how those organisations in the remittances and payments businesses can most effectively cope with the Consumer Financial Protection Bureau (CFPB) industry regulation. The webinar replay is accessible from Earthport’s website.
During the webinar, over 180 executives from U.S. banks, money transfer organisations and their advisors were polled on their readiness for DFS1073. Highlights included:
83% of financial institutions have assigned someone to focus on Dodd-Frank 1073
66% of financial institutions understand the detail of what needs to be done surrounding Dodd-Frank 1073 in advance of the February 2013 deadline
76% of financial institutions feel there will be a negative impact on their consumer payments business due to Dodd-Frank 1073
“Earthport is perfectly positioned in helping financial institutions address the requirements of Dodd-Frank for cross-border consumer payments,” said Neil Burton, Director of Product Strategy at Earthport. “Our service was designed from the outset with transparency and predictability at its core. We are busy working with banks to ensure that our service fits within their overall compliance requirements for DFS1073.”
Earthport’s payments service reaches banked beneficiaries in over 50 countries. By providing a global hub and routing cross-border payments via domestic channels, its service model already addresses many of the transparency and predictability requirements of DF1073. Earthport is working on a programme of additional minor enhancements in conjunction with key clients. These include:
Pre-configurable cancellation windows
Superior upfront validation
Ensured transparency and disclosure of principal amount and settlement dates
To download the complete Dodd-Frank 1073 webinar, please click here.
Summary: Dodd-Frank Section 1073
The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) was established in response to the financial crisis of 2008 to reform the way the U.S. financial system operates. Section 1073 of Dodd-Frank (DFS1073) seeks to protect consumers sending Electronic Fund Transfer (EFT) payments across borders. Specific requirements include:
Full fee disclosure at the time of origination
Guarantee of amount of final funds delivered
Guarantee on when funds will be received
Right to cancel a transaction up to 30 minutes after its submission
Earthport plc, a regulated global financial services organisation, specialises in the provision of a white label cross-border payments service.
Through its innovative payments framework, specifically designed for high volumes of low value cross-border payments, Earthport provides a cost-effective and transparent service for secure international payments. Earthport’s clients include banks, foreign exchange businesses, money transfer organisations, payment aggregators and e-commerce businesses. Through Earthport’s well-established payments infrastructure, clients can clear and settle payments directly to banked beneficiaries in over 50 countries.
The company is headquartered in London and is listed on the Alternative Investment Market (AIM) on the London Stock Exchange. It operates globally with additional regional offices in Dubai and New York. Earthport plc is authorised and regulated by the Financial Services Authority under the Payment Services Regulations 2009 for the provision of payment services. To learn more, please visit http://www.earthport.com/ and follow us on Twitter @Earthport.
U.K. Media Contact:
Sue Grant/Amy Berman
Tel: 020 7437 0227