Payments News Update – October 30, 2026
Legal and Regulatory Developments
SPOTLIGHT: Eighth Circuit Strikes Down Federal Reserve’s 21-Cent Debit Card Fee Cap
Courthouse News Service – October 26, 2026
The Eighth Circuit ruled Monday that the Federal Reserve Board must rework its long-standing rule capping how much banks can charge to process debit card transactions.
For over a decade, banking and retail industries operated under the Fed’s 21-cent interchange fee cap, a one-size-fits-all formula established after Congress instructed the central bank to address soaring, “unchecked” swipe fees.
In the 11-page appellate ruling, U.S. Circuit Judge David Stras throws that standard out the window, finding the board overstepped its authority by lumping fixed costs into the fee formula, and it has no legal cushion or “deference” to fall back on. . . .
Sezzle Joins BNPL Rivals in Seeking a Bank Charter
Digital Transactions News – October 23, 2026
Joining a trend building in the buy now, pay later payments sector to gain more control over their operations and offer more diversified services, Sezzle Inc. reported Thursday it has filed an application with the Comptroller of the Currency to charter a national bank to be known as Sezzle Bank N.A.
Founded in 2016, Minneapolis-based Sezzle also has applied for insurance through the Federal Deposit Insurance Corp. BNPL providers traditionally have partnered with banks to fund their short-term loans to consumers, but now that’s changing.
“If approved, Sezzle Bank would offer a broad range of banking products and services, including FDIC-insured deposit accounts, checking and savings accounts, and credit products,” Sezzle said in a news release. . . .
Firm Announcement: Law School Scholarship Essay Contest
Beyond this week’s payments regulatory news, we close this section by inviting you to check out an initiative from our firm’s Whistleblower Practice Group:
Seventh Constantine LLP Law School Scholarship Essay Contest on the Importance of Whistleblowers
Our Seventh Law School Scholarship Essay Contest deadline is approaching on November 20, 2026. We encourage current and prospective law school students to enter by checking out the prompts, the eligibility requirements, and more in the link below.
Industry Developments
SPOTLIGHT: Paze Sets Big Targets After Revamp
Payments Dive – October 22, 2026
Early Warning Services aims to make inroads with the largest U.S. merchants for its Paze wallet over the next three years after the company revamped its product strategy last year.
Paze is trying to establish a two-sided network with consumers and merchants that embed the digital wallet into their checkout path, much like rival offerings from Apple Pay and PayPal Holdings.
Paze’s immediate focus will be on adding the 100 largest U.S. merchants, Early Warning CEO Cameron Fowler said in an interview. . . .
European Payments Firms Form Council for Agentic Commerce
PaymentsJournal – October 26, 2026
Artificial intelligence agents are poised to shoulder a larger role in retail, prompting the payments industry to prepare for their growing use in commerce.
In Europe, that effort has led to the creation of a new industry body, the Local Payments Council for Agentic Commerce.
Its founding members span a range of industry players, including fintechs like the UK’s PPRO, Poland’s BLIK, and Belgium’s Bancontact. The group also includes the European Payments Initiative, which developed the EU-wide digital wallet Wero, and Greece’s national payment clearing house, DIAS. . . .