Borrowers who can’t or won’t accept credit cards or debit cards may want to consider a third-party solution.
The Financial Services Roundtable has released a new list of banking automation product recommendations.
The recommendations are based on consumer experiences, regulatory compliance, and the type of automated systems used to manage payments.
The roundtable was established by the Federal Reserve in 2008 to recommend how to address financial services and consumer privacy concerns.
The list, which was recently released, includes a variety of banking products, including automated teller machines, automatic ATM machines, and cashier-check-transaction kiosks.
One feature that’s missing from the roundtable recommendations is any specific guidance about how banks should use those automated systems.
For example, it’s unclear whether banks should be required to install software to allow them to identify and report fraudulent transactions.
The financial services roundtable’s recommendations are not exhaustive.
There are no recommendations for banking automation for credit card or debit card systems, which make up the bulk of the overall list.
The Federal Reserve recommends that banks use machines that have access to their own data.
Borrower safety and security The Fed recommends that credit card and debit card companies work to improve customer safety and that banks take steps to limit their access to personal data about customers.
The Fed also says that credit and debit cards should not be used to pay for items that aren’t covered by insurance.
“Banks should use the tools at their disposal to protect customers from identity theft and fraud, as well as ensure that the systems they use to process payments and transactions are secure,” the Fed said in its guidance.
Banks should also make it easier for customers to report identity theft.
Banks can take steps that help customers report suspected identity theft, including sending alerts to customers and issuing a “report a suspected identity thief” link on credit card transactions.
Banks are also required to share information about suspected fraud with law enforcement, credit reporting agencies, and insurance companies.
Banks and other financial institutions are also responsible for providing consumer protections that are similar to the federal Fair Credit Reporting Act (FCRA).
“The Federal Reserve urges credit and financial institutions to use all of the tools they have available to them to protect consumers, reduce the risk of identity theft by implementing best practices, and prevent the spread of fraud,” the Financial Services Group wrote in its report.
A consumer’s financial situation and how to manage their money should be up to the bank.
Some people use credit cards to save for vacations, rent, or to buy goods and services.
Some bank customers also use their credit cards for everyday living, such as to pay bills.
A person’s financial status and risk of a loss or theft should be kept in mind as they use their cards to pay.
In a report released last year, the Federal Deposit Insurance Corporation (FDIC) noted that while people who pay with their credit or debit credit cards are less likely to be victims of fraud, they are more likely to experience the consequences of fraud.
The FDIC also noted that fraud victims are less able to pay their bills if they are unaware of their credit and/or debit card payments.
Banking systems need to be equipped to prevent fraud, according to the report.
Banking automation can help customers, too.
The banks and other entities that use automated systems need better guidance on what the risks are of accepting credit cards and debit checks, and how they can make their systems safer.
It’s also important to make it clear that the banking systems must be fully compliant with the FCEPA, according the report, as the FCA has a process to assess whether or not a bank is compliant.
In the meantime, the Fed recommends “that credit and banking institutions implement policies that include requirements for reporting fraud and reporting risk of loss or damage to customers’ accounts, and that they develop clear rules and procedures for using the technologies used to handle the payments.”
For more:The American Financial Group: https://www.theamericanfinancialgroup.com/financial-services/banking-automation-products/billing-autotools-banking/