Buy Now, Pay Later programs are effectively the same as credit cards, the Consumer Financial Protection Bureau said Wednesday.

In what it called an interpretive rule, the federal consumer watchdog agency said so-called BNPL lenders are obligated to offer refunds and allow users to dispute charges just like they can with traditional credit cards.

“When consumers check out and choose Buy Now, Pay Later, they don’t know if they will get a refund if they return their product or whether the lender will help them if they didn’t get what was promised,” Consumer Financial Protection Bureau Director Rohit Chopra said in a statement.

“Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and regulations already on the books.”

The CFPB said it has been investigating the BNPL industry for more than two years and often receives complaints about refunds and disputed transactions in such programs. About 13% of BNPL transactions involve a dispute or return, the agency said.

BNPL programs that let customers pay for products over time without paying interest have grown in recent years. A new Federal Reserve Economic Well-Being of U.S. Households report released this week said 14% of U.S. adults reported using Buy Now, Pay Later programs last year — a 2% increase compared with 2022.

Consumers’ top reasons for using BNPL were wanting to spread out payments (87%) and convenience (82%). More than half of BNPL users said it was the only way they could afford to buy what they did.

The CFPB said BNPL programs are advertised as a payment option at checkout, similar to credit cards. They work as digital accounts that link to a company’s web site or mobile app. Merchants are charged transaction fees, similar to credit cards.

The CFPB said BNPL programs fall under the purview of the Truth in Lending Act, requiring lenders to investigate disputes initiated by consumers and pause payments while they are investigated. The act also ensures lenders credit refunds to consumer accounts and provide billing statements.

“President Biden has encouraged his Administration to do everything possible to crack down on corporate rip-offs,” National Economic Council Deputy Director Jon Donenberg said in a statement about the rule. “The Consumer Financial Protection Bureau is answering that call by making sure Buy Now, Pay Later platforms abide by the law, including providing refunds when products are returned or not delivered.”

The interpretive rule comes less than a week after the Supreme Court preserved the current funding structure for the agency, which was established during the Obama administration to enforce federal protections for consumer financial products.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) serves as a pivotal network for secure financial messaging across the globe.

SWIFT underpins international trade and commerce by facilitating reliable and swift cross-border payments.

For corporate treasurers, who grapple with the complexities of managing liquidity and risks across diverse markets, SWIFT’s robust infrastructure is indispensable. It ensures that transactions are not only executed with precision but also adhere to stringent compliance standards.

As businesses expand their global footprint, SWIFT’s role becomes increasingly critical, offering a unified channel to navigate the multifaceted world of international banking.

Trends in SWIFT: The Rise of gpi

The financial landscape is witnessing a transformation with the advent of SWIFT’s Global Payment Innovation (gpi).

This initiative is rapidly setting the new standard for cross-border payments, with over 150 banks worldwide embracing gpi, including major transaction banks.

The gpi framework is designed to address the perennial challenges of speed, transparency, and traceability in international payments.

It offers a real-time tracking feature, the gpi Tracker, which provides corporates with unprecedented visibility into payment statuses, including confirmations upon crediting of beneficiaries’ accounts.

The initiative’s success is evident in the daily exchange of payments worth billions, signifying a paradigm shift towards more efficient and customer-centric banking operations.

As SWIFT gpi moves towards universal adoption, it promises to redefine the treasury operations of businesses, ensuring that cross-border payments are not only faster but also more transparent and predictable.

Legislative Changes and SWIFT gpi Compliance

The regulatory environment surrounding international payments is evolving, with SWIFT gpi at the forefront of legislative changes.

In November 2018, SWIFT mandated that all banks must be capable of receiving gpi messages, including the Unique End-to-End Transaction Reference (UETR), and forward that UETR to the next bank.

This directive ensures that even banks not offering gpi services can participate in the tracking process, thereby maintaining the integrity of the payment chain.

The compliance with these standards is crucial for banks to avoid disruptions in international payments.

Additionally, the Stop and Recall Payment service (gSRP), a part of gpi’s second phase, addresses the need for market standards around the rapid recall of payments, further aligning with legislative requirements for consumer protection.

These compliance measures are not only enhancing the security and efficiency of cross-border payments but also reinforcing the trust that businesses and consumers place in the banking system.

Economic Implications of SWIFT Changes for Businesses

The evolution of SWIFT through its gpi initiative will have profound economic implications for businesses globally.

The enhanced speed and transparency of cross-border payments facilitate quicker settlement times, thereby improving cash flow and reducing the opportunity cost of capital tied up in transit.

This efficiency gain is a boon for businesses, particularly small and midsize enterprises (SMEs), for whom international transactions are critical.

Moreover, the ability to track payments in real-time and the assurance of fee transparency mitigate the risks associated with currency fluctuations and hidden charges, enabling more accurate financial forecasting and budgeting.

The gpi’s ability to carry richer remittance information improves reconciliation processes, reducing administrative overheads and potential errors.

Collectively, these improvements foster a more conducive environment for international trade, encouraging businesses to expand their operations across borders with greater confidence in the financial mechanisms that underpin global commerce.

Future Outlook: SWIFT gpi and Beyond

The gpi initiative is just the beginning of a series of innovations set to revolutionize the financial industry.

The upcoming phases of gpi, including the integration of distributed ledger technology (DLT) for reconciling banks’ nostro databases, signal a commitment to leveraging cutting-edge technology for financial services.

The Stop and Recall Payment service and the gpi COVER service, slated for future release, will further enhance the control and transparency of cross-border payments. With the rapid adoption of gpi by a significant number of banks, the initiative is expected to encompass the majority of global payment traffic, solidifying its position as the new norm.

The focus on improving the quality of payment-related data and the potential for instant payment processing positions SWIFT gpi as a catalyst for a more interconnected and efficient global economy.

The trajectory of SWIFT gpi is bringing about a new era for global finance.

Businesses must embrace these innovations to stay competitive, leveraging the enhanced capabilities for growth and operational excellence.

The future of international payments is here, and it is swift, secure, and user-centric.

The Trump campaign launched a fundraising page that allows “any federally permissible donor the ability to give” to its political committees using any crypto asset accepted through the Coinbase cryptocurrency exchange.

The announcement promotes Trump’s message that he is a crypto-friendly candidate, and also appeals to a core group of young male voters who are increasingly likely to dabble in digital assets. It came as Trump’s defense rested in his hush money case in New York.

Cryptocurrencies are a digital asset that can be traded over the internet without relying on the global banking system.

Trump’s campaign is accepting a range of popular cryptocurrencies that include Bitcoin, Ether and US Dollar Coin, and also include the low-value coins that tend to be popular with Internet personalities like Shiba Inu Coin, and Dogecoin.

Billionaire Elon Musk, most notably, is considered a fan of the latter two, traded on markets as DOGE and SHIB.

It’s not clear whether the Trump campaign will hold onto the crypto or will immediately sell it, and what sort of fees it may pay to liquidate. While the campaign says it plans to follow U.S. election laws, the anonymous nature of cryptocurrencies can make it tricky to confirm the funds are coming from who they say they are.

Trump has already received millions in cryptocurrency personally through his Trump Digital Trading Cards non-fungible token projects and his MAGA coin, which was released last August.

Julia Krieger, a spokeswoman for Coinbase, told The Associated Press that “crypto is nonpartisan and moves money forward because it’s cheaper and faster,” adding that the Coinbase platform is open to all candidates this election season.

A representative from President Joe Biden’s campaign did not respond to an Associated Press request for comment on whether it will begin accepting cryptocurrency donations.

While some states don’t allow cryptocurrency donations in state races under existing campaign finance laws, the Federal Election Commission does allow committees to receive bitcoin as contributions.

A 2014 advisory opinion issued by the commission concluded that bitcoin is “money or anything of value” within the meaning of the law and political committees should value the contribution based on the market value of bitcoin at the time the contribution is received.

The presidential campaign for independent candidate Robert F. Kennedy Jr. currently accepts bitcoin donations.

In conventional money, Biden and the Democratic National Committee said Monday that they raised more than $51 million in April, falling well short of the $76 million that Trump and the Republican Party reported taking in for the month.