Banks Gain New Fraud Tools as House Panel Advances Payments Bills

Small business owners and retailers should pay close attention to new legislative movements in Washington that aim to modernize how credit is built and how payments are protected. The House Financial Services Committee just advanced several bills that could directly impact your customer's ability to qualify for financing. One major highlight is the 'Credit Access and Inclusion Act,' which allows landlords and utility companies to report positive payment data to credit bureaus. This is a win for merchants because it helps thin-file or credit-invisible customers build the scores they need to be approved for your financing programs. The package also addresses the growing Earned Wage Access (EWA) market. New federal guidelines plan to clarify that EWA is not technically 'credit,' provided it meets specific consumer protection standards. For retailers, this stabilizes a popular tool that many employees use to manage their personal cash flow. Additionally, new fraud-prevention measures will allow banks to share more information to stop scammers. While these tools target banks, the trickle-down effect for you is a more secure payment environment and potentially fewer chargeback headaches. These bills still need to pass the full House and Senate, but they signal a strong bipartisan push to expand consumer purchasing power through alternative data.

Source: PYMNTS

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