Bankers believe Dodd-Frank 1073 will have little benefit for consumers but will have far-reaching negative impacts on the payments business, according to a new survey from Fundtech. The survey concentrated on banks’ sentiments towards Dodd-Frank section 1073, which mandates transparency around costs, timing and repudiation for consumer cross-border transfers.
The survey showed that nearly 90% of banks expect that Dodd-Frank 1073 will have a negative impact on their payments businesses. Less than 5% of banks believe that the regulation will have a positive impact. When asked whether the regulation will deliver the intended benefit to the consumer, 52% of respondents stated that it would have more of a negative impact than a positive one. Only 2% of respondents felt that the regulation would deliver the intended benefits.
Dodd-Frank 1073 mandates that consumers are given 30 minutes to cancel cross-border transactions – however, only 2% of banks state that consumers rescinding orders is a frequent occurrence. Of those banks that knew the frequency, 43% state that consumers never rescind orders.
The survey took place in December 2012.
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