Earthport, a cross-border payments provider, announced plans yesterday to update its services to address the requirements of Dodd-Frank 1073, which requires greater transparency from providers of remittances and international payments. The Consumer Financial Protection Bureau announced plans last week to move ahead with the regulation that charges international payments providers with telling customers upfront how much the transaction will cost and how much the recipient will actually receive.
Earthport held a webinar last week with more than 180 banking executives discussing the new regulations; 76 percent of the executives said they think Dodd-Frank 1073 will hurt their payments business in some way, according to a statement released by Earthport yesterday.
Earthport said that its service model of routing cross-border payments via domestic channels already provides more of the transparency and predictability required by the new federal regulation. Earthport is adding a series of enhancements to its service to provide ensured disclosure of principal amount and settlement dates for transactions, cancellation windows that can be preconfigured and better upfront validation.
These improvements will help financial institutions deal with some of the specific requirement of Dodd-Frank 1073, Earthport said, such as guaranteeing the amount of funds finally delivered to the recipient and the date when the funds will be delivered, as well as giving full fee disclosure when the transaction is originated and the right to the customer to cancel the transaction of to 30 minutes after its submission.