American Transaction Processors Coalition Submits Letter to CFPB: Proposed Regulation Could Cut Off Access and Innovation in Prepaid Industry

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American Transaction Processors Coalition is warning federal regulators about proposed rule on prepaid accounts through letter to CFPB

The American Transaction Processors Coalition (ATPC), a leading industry association of payment processors, has submitted a letter warning federal regulators that a proposed rule on prepaid accounts could severely limit consumer access and stifle innovation in the financial technology sector, if approved as written.

The American Transaction Processors Coalition submitted comments to the Consumer Financial Protection Bureau (CFPB) in response to the regulator’s proposed new rules for prepaid accounts.

“While we applaud the CFPB’s intentions to protect consumers, we are highly concerned that the proposed regulation will actually have the reverse effect by cutting off consumer access and stifling innovation,” said ATPC Executive Director H. West Richards. “Prepaid accounts are increasingly important tools for consumers and businesses alike. The CFPB needs to take the time to fully understand the potential unintended consequences of these rules before moving forward.”

The ATPC has also engaged Congress on behalf of the industry, forging a bipartisan consensus within Georgia’s Congressional Delegation that the proposed regulations could overly burden the state’s transaction processing industry. Members of the delegation have challenged the CFPB and the U.S. Treasury to fully study the risk of unintended consequences on consumers and the industry before finalizing the rule.

The full ATPC letter submitted to the CFPB can be read here.

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About the American Transaction Processors Coalition
The ATPC was created to protect, promote and preserve the interests of this critical Georgia industry through proactive public relations and government affairs activities. Member companies include: Worldpay US; Elavon; FIS; InComm; Merchant e-Solutions (a Cielo Company); Ingenico; Bluefin; and Vesta. Sponsors include: Hunton & Williams (Founding sponsor); VCE; and Brightwell Payments. Learn more at http://www.atpcoalition.org.

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