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Prepaid Regulation Review: Dodd-Frank, Durbin Uncertainty Persists

Prepaid Expo recently released their first PEERS (Prepaid Expo Executive Report Series).

The inaugural PEERS reviews different topics in prepaid regulation covered by industry experts. CoreCard’s own Dan Stavros brought insight into the following article:

Dodd-Frank, Durbin Uncertainty Persists

Don’t look to legislators or regulators for answers, because NO ONE has them yet; the legislation is still in flux. That was the bottom line courtesy of a panel dedicated primarily to the CARD Act, Dodd-Frank and the Durbin Amendment moderated by NBPCA President Kirsten Trusco and featuring senior legal officers from Green Dot and MetaBank.

According to Dan Stavros, EVP of industry software and processor evaluation services provider CoreCard, who attended the session, one of the greatest challenges his company and its clients face is trying to interpret the current regulatory vagaries. “We have
many clients, most of whom have legal counsel,” Stavros said. “Depending on the question, we may get three different answers from three different attorneys – including our own counsel – so the safest option is usually to go with the majority opinion. If two
of three attorneys agree, that’s probably the way to go, although some clients still insist on taking their own approach, and we’ll accommodate them.”

“Whenever power shifts from one
political party to the other, the rules
invariably change, and it costs us and
our clients time and money to then
adapt to those changes.” – Dan Stavros, CoreCard

On the plus side, both political parties in Congress have recently demonstrated that they’re receptive to potential revisions to
Dodd-Frank and Durbin not directly related to prepaid, which suggests both sides recognize that Dodd-Frank and Durbin have
problems, and which means an overhaul with implications for prepaid may not be unrealistic. For those in the industry with whom Dodd-Frank and the Durbin Amendment are not especially popular, this may be promising news. But Stavros pointed out that one of the most frustrating aspects to the current regulatory roller coaster isn’t necessarily the nature of the regulatory changes, but the fact that the changes keep taking place.
“Politics aside, whenever power shifts from one political party to the other, the rules invariably change, and it costs us and our clients time and money to then adapt to those changes. In some cases, it may be that we actually have to undo what we just did to
comply for a regulation because it’s been reversed,” said Stavros.

To read all articles in PEERS, visit: Prepaid Expo

PEERS is a series of summary briefs for prepaid business executives focused on key developments and topical hot spots driving prepaid industry change.

Content is based on – but not restricted to – presentations, panels and subject tracks covered in the Prepaid Expo global event portfolio by prepaid specialists. Additional perspectives and insights have been provided via exclusive interviews and research with prepaid industry leaders and experts.

PEERS is produced by Prepaid Expo, the world’s largest and most authoritative conference and exposition dedicated to creating business opportunities for closed- and open-loop prepaid professionals and their partners worldwide.

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