The 3 R's of Campus Payments — Rules, Regulations, and Reform

Since the onset of our recent economic downturn, more rules and regulations have been enacted to govern financial services than at any other time during the last three generations. Rules, Regulations, and Reform™ are The New "3 R's" of Campus Payments™. What's more, the process is still ongoing; we've not yet seen the end of reforms.

These wide ranging changes are the result of several broad-brush factors, from the financial failures of "too big to let fail" institutions to the need to protect consumers from deceptive and abusive business practices. Whether or not you considered these changes helpful or intrusive depended primarily upon your perspective—as merchant, consumer, or financial services provider. One thing most of us can agree on is that the age of "consumerism" has been replaced by the age of "consumer skepticism."

Here are some key reform elements that recently have had an impact on colleges and universities:

A. Credit Card Accountability Responsibility And Disclosure Act [ May 2009 ]
(Credit CARD Act of 2009) Protects consumers from what the Federal Reserve labels "payment and billing practices that are unfair or deceptive."
http://www.opencongress.org/bill/111-h627/text

B. Regulation Z [ Nov 2009 ]
(TILA - Truth In Lending Act) Promotes the informed use of consumer credit by requiring disclosures about its terms and cost.
http://www.fdic.gov/regulations/laws/rules/6500-1400.html

C. Regulation E [ July 2010 ]
(Electronic Fund Transfers) Protects consumers from unexpected account overdraft fees.
http://www.scribd.com/doc/38466274/Regulation-E-Text

D. Wall Street Reform and Consumer Protection Act [ July 2010 ]
(Dodd-Frank Act) Improves accountability and transparency in the financial system, ends "too big to fail," protects the American taxpayer by ending bailouts, and shields consumers from abusive financial services practices.

(Durbin Amendment) Ends abusive debit card business practices, allows discounts for use of cash or other non-credit payment methods, and permits merchants to set a minimum (and for higher education, a maximum) amount for credit card transactions.
http://docs.house.gov/rules/finserv/111_hr4173_finsrvcr.pdf

E. PCI 2.0 [ Jan 2011 ]
Updates existing Payment Card Industry cardholder data security standards: PCI DSS, PA-DSS, and PTS.
https://www.pcisecuritystandards.org/

F. Debit Card Interchange Rates [ July 2011 ]
Responds to Durbin amendment and lowers debit card interchange fees.
http://federalreserve.gov/

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