PROVIDENCE – Paper checks and mail-order money transfers have gone by the wayside.
These days, it’s all about digital payments, made in real time between banks through the national Automated Clearing House Network. And soon, state credit law will reflect that, with the R.I. Senate and House each approving their own, identical legislation on May 24 and May 25, respectively.
The companion bills, which must each be approved by the opposite chamber before heading to the governor’s desk, seek to modernize existing regulations by adding a definition for Automated Clearing House Network and specifying that electronic card payments through the network are subject to state credit card laws. This also ensures that any loans to be repaid using digital payments or those through the clearing house network are subject to existing interest rate caps and protections under state commercial law.
Nationwide, payments through the Automated Clearing House Network have been rapidly growing in number and value in recent years, with 29.1 billion payments worth $10.8 trillion in 2021, according to the National Automated Clearing House Association.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
