As the payment industry utilizes new technologies to become more dynamic, efficient, and cost-effective, industry innovators must increasingly depend on legal counsel who are adept at advising on legal issues related to the full range of emerging payment mechanisms. Even the most innovative payment solutions generally involve elements of the legacy payment networks, however, which makes it crucial to have an advisor who understands the underlying operational and banking infrastructure of how payments are processed and how money is traditionally transferred.
We can assist clients with issues involving virtually any emerging payment technology or system, including payment cards; biometrics; emerging network technologies; prepaid stored value cards; near field communication (NFC); general spend reloadable cards; online person-to-person (P2P) payments; electronic cash; account-to-account (A2A) payments; Electronic Bill Presentment and Payment (EBPP); mobile card acceptance; Internet, mobile, and contactless payments; next-generation credit and rewards cards featuring microcomputers; and more.
With a payment systems team few firms can match for depth and breadth, we offer the full scope of services required to operate at any point in the payment process to a range of clients, from card issuers to processors to merchants. We have extensive experience counseling clients on the regulatory and compliance issues associated with payment systems transactions. We are also fully experienced in structuring such transactions, including handling program agreements, portfolio purchases and sales, and processing agreements.
Transactional depth and relevant experience
We have represented major issuers, retailers, processors, technology providers, and merchants in negotiating and documenting hundreds of agreements for the issuance of co-branded general-purpose credit cards; co-branded debit cards; private-label cards, and prepaid cards; loyalty, rewards, and points programs; payment processing arrangements; and online marketplaces. We have handled many other aspects of payment systems and programs, including both major commercial agreements and customer disclosures and agreements for use online, on the telephone, and in person, across a wide range of industries from airlines to global oil companies and including 529 plans and agreements for sports teams.
A representative sample of our experience includes:
- Representation of financial institutions and mobile telecommunications carriers in connection with the implementation of mobile payment systems.
- Representation of a major financial institution in implementing a mobile payment solution for remote and proximity payments with a leading Internet company in the U.S.
- Representation of a major financial institution in implementing a mobile P2P payment solution with a leading provider of mobile payment services in the U.S.
- Representation of a major financial institution in implementing a mobile ACH-based P2P payment solution in the U.S.
- Representation of a major financial institution in implementing a mobile payment solution in the Caribbean.
- Advised a major issuer on consumer regulatory issues associated with an iPhone application.
- Representation of a major financial institution with respect to a BIN sponsorship agreement to issue a prepaid account for a mobile wallet.
- Representation of a technology client in structuring, documenting and negotiating technology license and services agreement in connection with the client's development of a mobile payments processing platform.
- Representation of venture capital investors in a new P2P online payment system.
- Advice on compliance with state and federal consumer protection and credit laws and on the structuring, negotiation, and documentation of payment and banking agreements and infrastructure for a major P2P lending website.
- Representation of private equity investors in purchasing an established major international money transmitter.
- Representation of numerous companies providing cash management, automated accounts payable service, and other outsourced treasury management services.
- Representation of major card issuers and retailers on state unclaimed property laws.
- Representation of major card issuer in launching its first prepaid product, including documenting and negotiating the processing agreement and money transmission agreements, as well as handling customer documentation and collateral.
- Representation of clients in connection with structuring and documenting agreements for the purchase of billing and payment systems infrastructure for the provision of international SMS messaging services.
In working on matters such as those described above, we have advised clients on regulatory issues encompassing a wide range of legislation affecting the payment industry on both federal and state levels, including:
- Electronic Fund Transfer Act and Regulation E
- Truth in Lending Act and Regulation Z
- Bank Secrecy Act and FinCEN regulations and guidance
- Gramm-Leach-Bliley Act privacy and data security issues
- Federal Deposit Insurance Act
- Payment network rules (including card brands and ACH)
- State licensed lender, loan broker, and other consumer financial protection laws
- State money transmitter, payment instrument, and check seller laws
- State gift card laws
- State unclaimed property laws
- State PUC regulations governing billing of third-party services to mobile bills
- FCC Truth in Billing