NAFCU to Federal Reserve Banks: Don’t intervene in payment systems
Dec. 16, 2013 – NAFCU Regulatory Counsel Angela Meyster urged continued dialogue on reforming the U.S. payment system, rather than intervention from the Federal Reserve Banks, in a letter Friday.
“NAFCU appreciates the role the Federal Reserve Banks have played thus far in reaching out to the industry to determine the payment system features that would provide the greatest benefit to both financial service providers and their customers,” Meyster wrote. “At this stage, however, NAFCU believes that it would be most beneficial for the Federal Reserve Banks to join the rest of the industry in a robust dialogue of the merits and pitfalls of implementing any changes, and to wait for industry action instead of attempting to enact reforms on its own.”
Meyster wrote in response to the Federal Reserve Banks’ white paper on gaps and opportunities in the payment system, particularly emphasizing the benefits of a payment system with near-real-time validation. Meyster agreed that speedier validation would help credit unions and noted the benefits of being able to scan checks through mobile devices and applications.
However, she wrote, “there must be an industry-wide dialogue about any unintended costs or issues that may arise in pursuing these gaps and opportunities.”