Open Access. Powered by Scholars. Published by Universities.®

Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Payment systems

Discipline
Institution
Publication Year
Publication
Publication Type
File Type

Articles 1 - 30 of 45

Full-Text Articles in Law

After Ftx: Can The Original Bitcoin Use Case Be Saved?, Mark Burge Dec 2023

After Ftx: Can The Original Bitcoin Use Case Be Saved?, Mark Burge

Faculty Scholarship

Bitcoin and the other cryptocurrencies spawned by the innovation of blockchain programming have exploded in prominence, both in gains of massive market value and in dramatic market losses, the latter most notably seen in connection with the failure of the FTX cryptocurrency exchange in November 2022. After years of investment and speculation, however, something crucial has faded: the original use case for Bitcoin as a system of payment. Can cryptocurrency-as-a-payment-system be saved, or are day traders and speculators the actual cryptocurrency future? This article suggests that cryptocurrency has been hobbled by a lack of foundational commercial and consumer-protection law that …


The Shadow Payment System, Dan Awrey, Kristin Van Zwieten Jul 2018

The Shadow Payment System, Dan Awrey, Kristin Van Zwieten

Cornell Law Faculty Publications

Banking, derivatives, and structured finance may attract the lion's share of accolades and approbation in global finance-but payment systems are where the money is. Historically, payment systems in most jurisdictions have been legally and operationally intertwined with the conventional banking system. The stability of these payment systems has thus parasitically benefited from the unique prudential regulatory strategies imposed on deposit-taking banks. These strategies include emergency liquidity assistance or "lender of last resort" facilities, deposit guarantee schemes, and special bankruptcy or "resolution" regimes for failing banks. Importantly, these strategies have the practical effect of relaxing the strict application of corporate bankruptcy …


Apple Pay, Bitcoin, And Consumers: The Abcs Of Future Public Payments Law, Mark Edwin Burge Jun 2018

Apple Pay, Bitcoin, And Consumers: The Abcs Of Future Public Payments Law, Mark Edwin Burge

Mark Edwin Burge

As technology rolls out ongoing and competing streams of payments innovation, exemplified by Apple Pay (mobile payments) and Bitcoin (cryptocurrency), the law governing these payments appears hopelessly behind the curve. The patchwork of state, federal, and private legal rules seems more worthy of condemnation than emulation. This Article argues, however, that the legal and market developments of the last several decades in payment systems provide compelling evidence of the most realistic and socially beneficial future for payments law. The paradigm of a comprehensive public law regulatory scheme for payment systems, exemplified by Articles 3 and 4 of the Uniform Commercial …


The Capital Commons: Digital Money And Citizens' Finance In A Productive Commercial Republic, Robert C. Hockett Jun 2018

The Capital Commons: Digital Money And Citizens' Finance In A Productive Commercial Republic, Robert C. Hockett

Cornell Law Faculty Working Papers

All societies must address two questions where the organization of productive activity is concerned. The first is whether production will be mainly publicly managed, privately managed, or 'mixed.' The second is whether the financing of production will be mainly publicly managed, privately managed, or mixed.

In the American commercial republic, we seem more or less to have answered the 'who does production' question to our own satisfaction. From the founding era to the present, we have elected to leave production primarily, though not of course solely, 'in private hands.' Where the financing of production is concerned, on the other hand, …


Merchant Authorized Consumer Cash Substitutes, Steven Stites, Norman I. Silber Jan 2018

Merchant Authorized Consumer Cash Substitutes, Steven Stites, Norman I. Silber

Hofstra Law Faculty Scholarship

Merchant Authorized Consumer Cash Substitutes (MACCS) have existed in one form or another for hundreds of years although without a generic name. At nineteenth century American railroad construction sites far from established towns, companies paid employees with “scrip.” Coca Cola, beginning in 1887 issued “coupons” which entitled bearers to a glass of soda. About the same time the Standard Oil Company—a customer—demanded “rebates” from railroads who shipped its oil. Descendants of these merchant-created substitutes are the MACCS of today-- phenomena including today’s “Penny-Saver Coupons,” “Groupons,” “Gift Cards,” “Disney Dollars,” “E-bates,” “Air Miles,” “Rewards Points,” and “cash-back offers.” There are countless …


Bitcoin's Growing Pains: Intermediation And The Need For An Effective Loss Allocation Mechanism, Andrew Kang Apr 2017

Bitcoin's Growing Pains: Intermediation And The Need For An Effective Loss Allocation Mechanism, Andrew Kang

Michigan Business & Entrepreneurial Law Review

This paper examines a phenomenon largely overlooked in existing literature: as Bitcoin matures into a mainstream consumer payments system with the rise of intermediation and hosted wallet services, it is slowly transforming from a purely decentralized peer-to-peer currency into something that (ironically) more closely resembles the bank-intermediated payment systems of the past. This paper explains how this transformation creates complicated issues of loss allocation not anticipated by Bitcoin’s founder. Further, it argues for the need of an effective legal mechanism to efficiently and fairly allocate losses between intermediaries and users. The first section of this paper will explain how Bitcoin …


The Bridging Model: Exploring The Roles Of Trust And Enforcement In Banking, Bitcoin, And The Blockchain, Catherine Martin Christopher Sep 2016

The Bridging Model: Exploring The Roles Of Trust And Enforcement In Banking, Bitcoin, And The Blockchain, Catherine Martin Christopher

Nevada Law Journal

No abstract provided.


Apple Pay, Bitcoin, And Consumers: The Abcs Of Future Public Payments Law, Mark Edwin Burge Aug 2016

Apple Pay, Bitcoin, And Consumers: The Abcs Of Future Public Payments Law, Mark Edwin Burge

Faculty Scholarship

As technology rolls out ongoing and competing streams of payments innovation, exemplified by Apple Pay (mobile payments) and Bitcoin (cryptocurrency), the law governing these payments appears hopelessly behind the curve. The patchwork of state, federal, and private legal rules seems more worthy of condemnation than emulation. This Article argues, however, that the legal and market developments of the last several decades in payment systems provide compelling evidence of the most realistic and socially beneficial future for payments law. The paradigm of a comprehensive public law regulatory scheme for payment systems, exemplified by Articles 3 and 4 of the Uniform Commercial …


Apple Pay, Bitcoin, And Consumers: The Abcs Of Future Public Payments Law, Mark Edwin Burge Jul 2016

Apple Pay, Bitcoin, And Consumers: The Abcs Of Future Public Payments Law, Mark Edwin Burge

Mark Edwin Burge

As technology rolls out ongoing and competing streams of payments innovation, exemplified by Apple Pay (mobile payments) and Bitcoin (cryptocurrency), the law governing these payments appears hopelessly behind the curve. The patchwork of state, federal, and private legal rules seems more worthy of condemnation than emulation. This Article argues, however, that the legal and market developments of the last several decades in payment systems provide compelling evidence of the most realistic and socially beneficial future for payments law. The paradigm of a comprehensive public law regulatory scheme for payment systems - exemplified by Articles 3 and 4 of the Uniform …


The Future Of The Economic Analysis Of Law In Latin America: A Proposal For Model Codes, Juan Javier Del Granado, M. C. Mirow Feb 2016

The Future Of The Economic Analysis Of Law In Latin America: A Proposal For Model Codes, Juan Javier Del Granado, M. C. Mirow

M. C. Mirow

Nothing excites civilian lawyers and judges more than commissions for codification. Codification is more than an academic enterprise. Codification projects directly cut across the interface between law and life. ALACDE intends to harness this Latin American interest in codification to bring the economic approach to Latin America. A new-generation law and economics civil and commercial code will be a conscious project to restate Roman law's usefulness for coping with today's problems. Through law and economics, Roman law will renew itself. As a paradigmatic private-law system, Roman law is eminently amenable to a state-of-the-art fusion with law and economics. Sensitivity to …


E-Commerce, Cyber, And Electronic Payment System Risks: Lessons From Paypal, Lawrence J. Trautman Aug 2015

E-Commerce, Cyber, And Electronic Payment System Risks: Lessons From Paypal, Lawrence J. Trautman

Lawrence J. Trautman Sr.

By now, almost without exception, every business has an internet presence, and is likely engaged in e-commerce. What are the major risks perceived by those engaged in e-commerce and electronic payment systems? What potential risks, if they become reality, may cause substantial increases in operating costs or threaten the very survival of the enterprise? This article utilizes the relevant annual report disclosures from eBay (parent of PayPal), along with other eBay and PayPal documents, as a potentially powerful teaching device. Most of the descriptive language to follow is excerpted directly from eBay’s regulatory filings. My additions include weaving these materials …


E-Commerce And Electronic Payment System Risks: Lessons From Paypal, Lawrence J. Trautman Jun 2014

E-Commerce And Electronic Payment System Risks: Lessons From Paypal, Lawrence J. Trautman

Lawrence J. Trautman Sr.

What are the major risks perceived by those engaged in e-commerce and electronic payment systems? What development risks, if they become reality, may cause substantial increases in operating costs or threaten the very survival of the enterprise? This article utilizes the relevant annual report disclosures from eBay (parent of PayPal), along with other eBay and PayPal documents, as a potentially powerful teaching device. Most of the descriptive language to follow is excerpted directly from eBay’s regulatory filings. My additions include weaving these materials into a logical presentation and providing supplemental sources for those who desire a deeper look (usually in …


Virtual Currencies: Bitcoin & What Now After Liberty Reserve, Silk Road, And Mt. Gox?, Lawrence J. Trautman Mar 2014

Virtual Currencies: Bitcoin & What Now After Liberty Reserve, Silk Road, And Mt. Gox?, Lawrence J. Trautman

Lawrence J. Trautman Sr.

During 2013, the U.S. Treasury Department evoked the first use of the 2001 Patriot Act to exclude virtual currency provider Liberty Reserve from the U.S. financial system. This article will discuss: the regulation of virtual currencies; cybercrimes and payment systems; darknets, Tor and the “deep web;” Bitcoin; Liberty Reserve; Silk Road and Mt. Gox. Virtual currencies have quickly become a reality, gaining significant traction in a very short period of time, and are evolving rapidly. Virtual currencies present particularly difficult law enforcement challenges because of their: ability to transcend national borders in the fraction of a second; unique jurisdictional issues; …


E-Commerce And Electronic Payment System Risks: Lessons From Paypal, Lawrence J. Trautman Oct 2013

E-Commerce And Electronic Payment System Risks: Lessons From Paypal, Lawrence J. Trautman

Lawrence J. Trautman Sr.

What are the major risks perceived by those engaged in e-commerce and electronic payment systems? What development risks, if they become reality, may cause substantial increases in operating costs or threaten the very survival of the enterprise? This article utilizes the relevant annual report disclosures from eBay (parent of PayPal), along with other eBay and PayPal documents, as a potentially powerful teaching device. Most of the descriptive language to follow is excerpted directly from eBay’s regulatory filings. My additions include weaving these materials into a logical presentation and providing supplemental sources for those who desire a deeper look (usually in …


Introduction To Mobile Money In Developing Countries: Financial Inclusion And Financial Integrity Conference Special Issue, Jane K. Winn, Louis De Koker Jan 2013

Introduction To Mobile Money In Developing Countries: Financial Inclusion And Financial Integrity Conference Special Issue, Jane K. Winn, Louis De Koker

Articles

This special issue of the Washington Journal of Law, Technology & Arts contains papers contributed to a conference held at the University of Washington School of Law on April 20, 2012. The conference, entitled Mobile Money in Developing Countries: Financial Inclusion and Financial Integrity, was organized by the University of Washington School of Law with the support of the Linden Rhoads Dean’s Innovation Fund, Deakin University School of Law, Australia, and the United Nations Commission on International Trade Law (UNCITRAL).

The conference provided an early opportunity to analyze the impact of the newly-released revised 2012 Financial Action Task Force (FATF) …


Governance Of Global Mobile Money Networks: The Role Of Technical Standards In Mobile Money In Developing Countries, Jane K. Winn Jan 2013

Governance Of Global Mobile Money Networks: The Role Of Technical Standards In Mobile Money In Developing Countries, Jane K. Winn

Articles

Mobile money has the potential to be an effective policy instrument for financial inclusion in developing countries, but it also has the potential to fuel money laundering and terrorist financing. The 2012 revised Financial Action Task Force standards attempt to strike a workable balance between the goals of financial inclusion and financial integrity in developing countries. Mobile money schemes are mostly based in national markets, however, and are not normally designed to address the need of poor migrants for cheap, effective cross-border remittance services.

Demand for such cross-border remittance services may drive the development of technical standards to build global …


The Cape Town Convention's International Registry: Decoding The Secrets Of Success In Global Electronic Commerce, Jane K. Winn Jan 2012

The Cape Town Convention's International Registry: Decoding The Secrets Of Success In Global Electronic Commerce, Jane K. Winn

Articles

The International Registry, established pursuant to the Cape Town Convention on International Interests in Mobile Equipment, is a new global electronic commerce system for recording and establishing the relative priority of interests in aircraft equipment. Other examples of global electronic commerce systems include the airline computer reservation system, the SWIFT financial network, and payment card networks.

The International Registry may be the most successful global electronic commerce system ever built in terms of the speed with which it was implemented, its adoption rate, and the dearth of controversy surrounding its operation. The real "driver" of its success is demand for …


Unification Of Payments Law And The Problem Of Insolvency Risk In Payment Systems, James S. Rogers Oct 2011

Unification Of Payments Law And The Problem Of Insolvency Risk In Payment Systems, James S. Rogers

James S. Rogers

No abstract provided.


Private Ordering In Light Of The Law: Achieving Consumer Protection Through Payment Card Security Measures, Edward A. Morse Feb 2011

Private Ordering In Light Of The Law: Achieving Consumer Protection Through Payment Card Security Measures, Edward A. Morse

Edward A. Morse

A private ordering regime has developed within the payment card industry to define appropriate security practices and to monitor compliance by network participants. Market demands for trustworthy systems upon which consumers and merchants could rely provide incentives for security, which are supplemented by privately-designed fines and sanctions imposed through contract by the card brands. Although private ordering has functioned sufficiently well to make payment cards a trusted payment method, the system is not completely secure, as data security breaches have continued to occur. This is not surprising, as complete security is not a feasible goal. Nevertheless, some have questioned whether …


Warranting Data Security, Juliet Moringiello Oct 2010

Warranting Data Security, Juliet Moringiello

Juliet M Moringiello

Massive data security breaches have grabbed headlines in the past few years. The data thieves responsible for these breaches have stolen the credit and debit card data of customers of retailers such as TJ Maxx, DSW Shoe Warehouse, BJ’s Wholesale Club, and the Hannaford grocery store chain. A thief in control of this payment card data, which can include debit and credit card numbers, expiration dates, security codes and personal identification numbers, has the ability to open new credit accounts and make charges on existing consumer accounts. These data breaches leave individuals fearful that their personal information will be used …


International Developments In Consumer Financial Services Law 2007-2008, Gregory M. Duhl Jan 2009

International Developments In Consumer Financial Services Law 2007-2008, Gregory M. Duhl

Faculty Scholarship

This Survey reviews international consumer financial services law developments in 2007 and 2008 (through August 15, 2008) in the areas of payment systems, the European Convention of Human Rights, insolvency laws, and consumer privacy. This review makes the contrast between the European and U.S. approaches to consumer regulation apparent, in particular the EU preference for direct regulation as compared to the tradition of private remedies in the United States.


Donald Rapson—A Remembrance, Steven L. Harris Apr 2008

Donald Rapson—A Remembrance, Steven L. Harris

Chicago-Kent Law Review

No abstract provided.


Introduction To Rethinking Payments Law, Steven L. Harris Apr 2008

Introduction To Rethinking Payments Law, Steven L. Harris

Chicago-Kent Law Review

No abstract provided.


Uniformity And Diversity In Payment Systems, Clayton P. Gillette, Steven D. Walt Apr 2008

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 Apr 2008

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.


Unauthorized Payment Transactions And Who Should Bear The Losses, Francis J. Facciolo Apr 2008

Unauthorized Payment Transactions And Who Should Bear The Losses, Francis J. Facciolo

Chicago-Kent Law Review

This article is concerned with how losses should be allocated between holders of accounts that are implicated in payment systems and the financial institutions that participate in the payment systems by acting as intermediaries between ac- count holders. The rules involving payment systems show a wide range of divergent approaches. In the period before a transaction is executed, some payment systems take the possible negligence of an account holder into account in allocating losses for unauthorized payment transactions. The checking system is the classic case. In contrast, the Truth-in-Lending Act and the Electronic Fund Transfer Act both ignore the negligence …


Table Of Contents - Issue 2, Chicago-Kent Law Review Apr 2008

Table Of Contents - Issue 2, Chicago-Kent Law Review

Chicago-Kent Law Review

No abstract provided.


A Theoretical Analysis Of Payment Systems, L. A. Khan Jan 2008

A Theoretical Analysis Of Payment Systems, L. A. Khan

South Carolina Law Review

No abstract provided.


Confusion And Convergence In Consumer Payments: Is Coherence In Error Resolution Appropriate?, Anita Ramasastry Jan 2008

Confusion And Convergence In Consumer Payments: Is Coherence In Error Resolution Appropriate?, Anita Ramasastry

Articles

At present, there are no uniform rules governing retail payment systems in the United States. Checks, credit cards, debit cards, and new types of payment systems—such as stored-value cards and prepaid cards—are governed by different rules and provide consumers with varying protections. In addition, several phenomena may have confused consumers about the type of consumer protections they have when using different payment systems. First, new types of intermediaries have developed—such as online funds transmission and electronic bill presentment and payment—that piggyback on existing payment systems. Second, electronic check conversion systems may convert customer checks into a different payment system—electronic funds …


Unauthorized Payment Transactions And Who Should Bear The Losses, Francis J. Facciolo Jan 2008

Unauthorized Payment Transactions And Who Should Bear The Losses, Francis J. Facciolo

Faculty Publications

This article is concerned with how losses should be allocated between account holders that are implicated in payment systems and the financial institutions that participate in those payment systems by acting as intermediaries between account holders. The account holders that are discussed in this article are not limited to individual consumers. This article also examines how an unauthorized transaction can be prevented and what this suggests about who should bear the loss of such a transaction. In doing so, this article looks at two moments at which an unauthorized payment transaction might be prevented: before the first unauthorized transaction, and …