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Uniformity And Diversity In Payment Systems, Clayton P. Gillette, Steven D. Walt
Uniformity And Diversity In Payment Systems, Clayton P. Gillette, Steven D. Walt
Chicago-Kent Law Review
The rules governing the transfer of value between users of payment systems differ among payment systems. Rules allocating loss from unauthorized payment, erroneous payment, and the reversibility of payment vary according to whether payment is made by check, credit or debit card, wholesale wire transfer, or letter of credit. Thirty-five years after the New Payments Code failed to attract enough support to become law, academics and practitioners recently have proposed that payment system rules be uniform. This Article rejects this initially attractive position. It argues that the optimal standardization of payment system rules allows diverse rules among payment systems. The …
Reimagining Payment Systems: Allocation Of Risk For Unauthorized Payment Inception, Linda J. Rusch
Reimagining Payment Systems: Allocation Of Risk For Unauthorized Payment Inception, Linda J. Rusch
Chicago-Kent Law Review
Payment systems have evolved as new mechanisms for transferring value have been created. The legal infrastructure supporting those mechanisms has evolved in a piecemeal fashion resulting in very different risk allocations depending upon the mechanism used to transfer value. This article argues that the time has come to revise payments law to address the risk allocation issues in a direct fashion based upon uniform policy positions, regardless of the mechanism used to transfer value. To illustrate that concept, an approach to drafting statutory language for drafting allocation of risk from unauthorized payment inceptions is proposed.