Cliq is and will remain a non-partisan company. We’ve worked with clients from across the political spectrum and look forward to doing so in the future.
However, this last election seems more significant than its predecessors. The results were unexpected by many, and the questions of why and how it happened are still being debated.
Whether you’re disappointed or delighted in the new administration, we all have to keep our companies going and should stop to consider how this new government might impact how we do business.
Certainly Donald Trump ran on a pro-business platform, calling for lower corporate taxes and fewer regulations. Some payment industry experts are hoping this results in more opportunities for growth and innovation.
One of candidate Trump’s campaign promises was the repeal of Dodd-Frank, which imposed regulatory restrictions on payments and financial services. That would be a tall order, but it’s possible that parts of the legislation will be stripped back, and regulatory reform will follow the tenets of the Financial CHOICE Act.
This act, sponsored by Congressman Jeb Hensarling, would allow some banks to opt out of parts of Dodd-Frank and repeal the Durbin Amendment, which limits fees charged to retailers for debit card processing. Proponents claim that these price controls harm consumers, as debit interchange funds innovative products such as reloadable prepaid cards. It may also be why the number of banks that offer free checking has dropped from 76% in 2009 to 37% in 2015.
The new administration may also take a second look at Operation Choke Point, a Department of Justice action intended to stamp out a wide range of illegal acts by shutting down access to banking and payments from those suspected of criminal activity. A good idea by any standard but one that had unintended consequences – payment processors being discouraged from serving industries guilty of nothing but often connected to criminal cases, such as gun dealers and pawnbrokers.
Cliq will keep you updated on any changes in industry regulations, and what they might mean for your business.