Marketing and Disclosure Guidelines

When marketing its products and services, the Platform must do so in a manner that adheres to regulatory requirements and avoids any Unfair, Deceptive, or Abusive Acts or Practices (“UDAAP”). The Consumer Financial Protection Bureau (“CFPB”) has rulemaking authority to prevent UDAAPs, as well as enforcement authority for entities within the agency's jurisdiction. Additionally, the CFPB has supervisory authority to detect and assess UDAAP risks to consumers by entities engaged in financial service and product-related markets. Synapse has developed these guidelines to ensure that platforms represent themselves, Synapse and Synapse’s banking partners in a manner that does not have an adverse effect to either of the aforementioned parties from regulatory, reputational/branding, or financial perspectives.

Unfair, Deceptive and Abusive Acts and Practices (UDAAP)

Synapse will follow the Consumer Financial Protection Bureau’s UDAAP examination considerations and guidance included in the Federal Trade Commission’s (“FTC”) Dot Com Disclosures for all marketing material, including deposit products, debit card issuance, and payment products. The following criteria must be met:

All representations in marketing documents, communicated to the public by any method, must be factually based.
All marketing materials must clearly and accurately disclose the following information in a format that is easily seen and understood by the consumer:
- costs, benefits, and other material terms of the products or services being offered
- related products or services being offered, either as an option, or required, to obtain certain terms
- material limitations or conditions on the terms or availability of products and services
The consumer’s attention should be drawn to key terms, including limitations and conditions that are essential to their ability to make an informed decision
All materials clearly and prominently disclose the fees, penalties, and other charges that may be imposed and the reason for the imposition
Materials inform customers of account agreement provisions that would allow changes in terms and conditions of the product or service
Materials must not misrepresent costs, conditions, limitations, or other terms, or omit any pertinent information
Advertising terms that are generally not available to the typical targeted consumer should be avoided.

The following penalties may apply for UDAAP violations:

Liability for assessed damages and subsequent restitution payments to consumers, referred to as redress penalties.
Civil penalties assessed as fines, which are put into the Federal Civil Penalty Fund established by the Dodd-Frank Act, which is used for CFPB operating costs and additional restitution payments to consumers who might not otherwise be compensated. The civil penalties are assessed at the following tiers:
- Tier 1 - For any violation of a law, rule, or final order or condition imposed in writing by the Bureau, a civil penalty may not exceed $5,000 for each day during which such violation or failure to pay continues. (Increased to $5,437 after July 14, 2016)
- Tier 2 - Notwithstanding paragraph (A), for any person that recklessly engages in a violation of a Federal consumer financial law, a civil penalty may not exceed $25,000 for each day during which such violation continues. (Increased to $27,186 after July 14, 2016)
- Tier 3 - Notwithstanding subparagraphs (A) and (B), for any person that knowingly violates a Federal consumer financial law, a civil penalty may not exceed $1,000,000 for each day during which such violation continues. (Increased to $1,087,450 after July 14, 2016)
Dodd-Frank also allows for mitigating factors to be considered in the assessment of penalties and has the power to modify or remit penalties.
FTC has the authority to fine up to $16,000 per violation of Section 5 of the FTC Act

CAN-SPAM Act

Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act is enforced by the FTC and was enacted to regulate advertising emails. When sending marketing emails, the following requirements must be met:

The email must clearly and accurately identify the Platform (sender) in the “From”, Reply to”, and “routing information” sections of the message.
The email must not contain a deceitful or misleading subject line in an attempt to push receivers to open the message.
It must state somewhere in the email that it is an ad.
A current physical address must be listed in the email, a PO Box can be used if that is where mail is received for the business.
The email must contain an easy way to opt-out of receiving future messages, any opt-out requests must also be honored within ten (10) business days.
These restrictions apply to email messages, sent by a third party on behalf of the Platform, the responsibility for compliance remains with the Platform in this case.

General Marketing Material

Any reference to Synapse Financial Technologies can be displayed as “Synapse”. “SynapsePay” should not be used; this includes any references in disclosures and FAQ pages. The Platform may elect to display our logos in connection to services provided by Synapse, however, they cannot be customized or altered in any way from the formats available on our website.

When marketing general products and services on websites, applications, or by other means, the Platform should not misrepresent the services to their users. When describing the services offered, the Platform must use clear descriptions, consistent with understood definitions for the products.

When making “Free” or similar offers, all of the terms, conditions and obligations should appear in close conjunction with the offer of “Free” merchandise or services; these must be disclosed at the outset of the offer. Additionally, in order to offer something for "free," the seller must not recoup the cost of the "free" merchandise in any way.

Consumer Complaint Management

Per CFPB Supervisory Highlights, "Financial service providers should be responsive to complaints and inquiries received from consumers. In addition, entities should monitor and analyze complaints to understand and correct weaknesses in their programs that could lead to consumer risks and violations of law."

Many UDAAP determinations depend on the consumers’ interpretation of claims made by businesses, therefore, complaints from consumers should be leveraged to help evaluate UDAAP compliance. Synapse will require that Platforms maintain records of all customer complaints for tracking purposes, and establish remediation procedures to ensure they are resolved in a timely manner, in compliance with all governing regulations. This information should also be analyzed to identify and correct any possible abusive, deceptive, or unfair practices.

Deposit Products

Deposit accounts are subject to regulatory laws and requirements set forth in the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”). The laws outlined within Dodd-Frank are enforced via regulatory guidelines, which dictate how the laws will be applied. The power to enforce the regulations rests with the US government.

All End-Users

Once a user creates their profile, they must agree to Synapse’s Terms of Service (“TOS”) and Privacy Policy. Once these disclosures have been provided to the users, it is not necessary to include them in the disclosures required to open an account.

General Disclosures

Platforms must include Synapse’s TOS and Privacy Policy to their users in one of the following ways:

Provide the documents directly to the users and require them to accept or agree to each, with the following language:

📜
(Platform Name) contracts with Synapse, our backend software provider, and Synapse’s partner banks, member FDIC. By creating a user profile on (Platform Name) you agree to Synapse’s Terms of Service and Privacy Policy

“Terms of Service” and “Privacy Policy” must be hyperlinks to Synapse’s documents.

Link these documents within the Platform’s own TOS and Privacy Policy, it must be made clear at the beginning of the document that there are additional agreements, linked within, with the following language:

📜
Synapse is our backend software provider, and partners with financial institutions, members FDIC. Synapse’s API, and their relationship with their bank partners enables us to offer banking services and products. By agreeing to [Platform Name]’s TOS and Privacy Policy, you also agree to Synapse’s terms and policies below:

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a user must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a “settings”, or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

Non-Interest Bearing Individual Demand Deposit Account (“DDA”) (DEPOSIT-US Node)

An individual non-interest bearing DDA allows the depositor to withdraw their funds from the account without warning or with less than seven days' notice. This is a transactional account which does not accrue interest, and should be marketed as such.

Marketing of non-interest-bearing demand deposit accounts must comply and follow all guidelines of the appropriate regulatory bodies. Enforcement actions may be brought upon by:

The Federal Trade Commission (“FTC”)
Consumer Financial Protection Bureau (“CFPB”)

General Disclosures

The platform will adhere to the following verbiage and placement requirements, also detailed in the Marketing/Disclosure Guidelines. Additionally, the Platform will not reference Synapse or its partner financial institutions in any other way without express written permission from the respective entity.

The Platform will not misrepresent their relationship to Synapse or its financial institution partners, nor will they claim a direct relationship with these financial institutions partners. To explain the association, disclosures will include language similar to:

📜
[Platform Name] partners with Synapse, our third-party bank software provider and agent of its bank partner(s), Member(s) FDIC, to open these accounts.

If a User is opening a DEPOSIT-US Node, they must accept Synapse’s Deposit Agreement, with the following verbiage on the page the account is created:

📜
The bank services are provided by Synapse’s financial institution partners, Member FDIC. By opening a deposit account on [Platform Name], you agree to Synapse’s Deposit Agreement.

“Deposit Agreement” shall be a hyperlink to the Platform’s custom Deposit Agreement, provided by Synapse.

Platform should include our contact information on their customer support page.

📜
Bank services are provided through our banking software provider, Synapse. To report a complaint relating to the bank services, email [email protected].

TIS Disclosures

Deposit accounts must be accompanied by a Regulation DD compliant TIS disclosure

For specific requirements, see: 12 CFR 230 https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol4/CFR-2012-title12-vol4-sec230-4

If a platform intends to provide users with financial incentives to maintain balances, on a non-interest-bearing account, it must be clear that the incentive is being paid by the Platform. The following terms cannot be used:

Interest
Yield
Annual Percentage Rate (“APR”)
Annual Percentage Yield (“APY”)

As an alternative, Platform may use the following:

Reward
Rebate
Bonus - provided that CFPB’s definition is met; https://www.consumerfinance.gov/eregulations/1030-2/2011-31727#1030-2-b-2

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a new Deposit Account must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a “settings”, or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

FDIC Insurance

The platform will not claim to be FDIC insured directly, the accounts are insured through Synapse’s bank partners. Account insurance coverage is subject to FDIC rules and limitations.

For all pages including references to transactions or funds held in a User’s Deposit Account, or bank services in the Deposit Agreement, include the following in the footer of the webpage and/or application screen:

📜
Banking services are provided by Synapse’s bank partner(s), Member(s) FDIC.

Endorsements

The use of endorsements and testimonials in advertising is subject to the same UDAAP laws as any direct marketing by the Platform. The FTC has released additional guidance, which must be adhered to. Synapse strongly suggests screening procedures are implemented to ensure any endorsements or testimonials comply with the FTC’s final guide. See: 16 CFR Part 255 (https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-publishes-final-guides-governing-endorsements-testimonials/091005revisedendorsementguides.pdf).

Additionally, the FTC has responded to questions regarding endorsements. Please see the following guidance:

https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking

Interest Bearing Individual Deposit Account (IB-DEPOSIT-US)

Interest Bearing Deposit Accounts are non-transactional savings accounts which accrue interest, and should be marketed as such.

Marketing of interest-bearing deposit accounts must comply and follow all guidelines of the appropriate regulatory bodies. Enforcement actions may be brought upon by:

The Federal Trade Commission (“FTC”)
Consumer Financial Protection Bureau (“CFPB”)

General Disclosures

The Platform will adhere to the following verbiage and placement requirements, also detailed in the Marketing/Disclosure Guidelines. Additionally, the Platform will not reference Synapse or its financial institution partners in any other way without express written permission from the respective entity.

The Platform’s disclosures will include language describing their relationship to Synapse and their partner banks similar to:

📜
The Platform uses Synapse, our third-party bank software provider and agent of Synapse’s bank partner(s), Member(s) FDIC, to open these accounts.

If a User is opening an IB-DEPOSIT-US Node, include a checkbox and the following verbiage on the page the User is created:

📜
The bank services are provided by Synapse’s bank partner(s), Member(s) FDIC. By opening a deposit account on [Platform Name], you agree to Synapse’s Deposit Agreement.

The following word shall be a hyperlink to the Platforms custom Deposit Agreement: “Deposit Agreement”

Include our contact information on your customer support page.

📜
Bank services are provided through our banking software provider, Synapse. To report a complaint relating to the bank services, email [email protected].

TIS Disclosure

Deposit accounts must be accompanied by a Regulation DD compliant Truth in Savings disclosure

For specific requirements, see: 12 CFR 230 https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol4/CFR-2012-title12-vol4-sec230-4

A Regulation DD compliant Truth in Savings disclosure will be provided, clearly stating terms and conditions, including interest rates. As stated above, this account earns interest paid by Synapse’s bank partners, therefore the following terms may be used for interest paid by those financial institutions:

Interest
Yield
Annual Percentage Rate ("APR")
Annual Percentage Yield ("APY")

If the client intends to add supplemental incentives to the interest rate paid by Synapse’s partner banks, the rates must be distinguished from one another, and disclosed separately. Only the following terms may be used to market any incentive not paid by Synapse’s partner banks:

Reward
Rebate
Bonus - provided that CFPB’s definition is met; https://www.consumerfinance.gov/eregulations/1030-2/2011-31727#1030-2-b-2

If user is to receive interest payments through a separate commercial agreement between Platform and a financial institution, other than Synapse’s partner banks, Synapse must be made aware. Additionally, the Truth in Savings agreement must be compliant, easily accessible, and clearly separate from the marketing of services that Synapse provides to Platform.

It is the platform's responsibility to comply with all Truth in Savings requirements/regulations if contracting with a third party financial institution.
It is the platform’s responsibility to avoid any language or claims that would mislead a user to believe services or products provided by a third party are provided by Synapse or Synapse’s banking partners.

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a new Interest Bearing Deposit Account must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a "settings", or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

FDIC Insurance

The platform will not claim to be FDIC insured directly, the accounts are insured through Synapse’s bank partners. Account insurance coverage is subject to FDIC rules and limitations.

For all pages including references to transactions or funds held in a User’s Deposit Account, or bank services in the Deposit Agreement, include the following the footer of the webpage and/or application screen.

📜
Banking services are provided by Synapse’s bank partner(s), Member(s) FDIC.

Endorsements

The use of endorsements and testimonials in advertising is subject to the same UDAAP laws as any direct marketing by the Platform. The FTC has released additional guidance, to which the Platform is required to adhere. Synapse strongly suggests screening procedures are put implemented to ensure any endorsements or testimonials comply with the FTC’s final guide. See: 16 CFR Part 255 (https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-publishes-final-guides-governing-endorsements-testimonials/091005revisedendorsementguides.pdf).

Additionally, the FTC has responded to questions regarding endorsements. Please see the following guidance:

https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking

Interest Checking Individual Deposit Account (IC-DEPOSIT-US Node)

Interest Checking Deposit Accounts are transactional depository accounts which accrue interest, and should be marketed as such.

Marketing of interest checking deposit accounts must comply and follow all guidelines of the appropriate regulatory bodies. Enforcement actions may be brought upon by:

The Federal Trade Commission ("FTC")
Consumer Financial Protection Bureau ("CFPB")

General Disclosures

The Platform will not misrepresent their relationship to Synapse or its bank partners, nor will they claim a direct relationship with those financial institutions. To explain the association, disclosures will include language similar to:

📜
The Platform partners with Synapse, our third-party bank software provider and agent of Synapse’s partner bank(s), Member(s) FDIC, to open these accounts.

If a User is opening a IC-DEPOSIT-US Node, they must accept the related Deposit Agreement, with the following verbiage on the page the account is created:

📜
The bank services are provided by Synapse’s partner banks(s), Member(s) FDIC. By opening a deposit account on [Platform Name], you agree to the Deposit Agreement.

"Deposit Agreement" shall be a hyperlink to the Platform’s custom Deposit Agreement, provided by Synapse.

Platform should include our contact information on their customer support page.

📜
Bank services are provided through our banking software provider, Synapse. To report a complaint relating to the bank services, email [email protected].

TIS Disclosures

Deposit accounts must be accompanied by a Regulation DD compliant TIS disclosure

For specific requirements, see: 12 CFR 230 https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol4/CFR-2012-title12-vol4-sec230-4

A Regulation DD compliant Truth in Savings disclosure will be provided, clearly stating terms and conditions, including interest rates. As stated above, this account earns interest paid by Synapse’s partner bank(s), therefore the following terms may be used for interest paid by Synapse’s partner bank(s) only:

Interest
Yield
Annual Percentage Rate ("APR")
Annual Percentage Yield ("APY")

If the client intends to add supplemental incentives to the interest rate paid by Synapse’s partner bank(s), the rates must be distinguished from one another, and disclosed separately. Only the following terms may be used to market any incentive not paid by Synapse’s partner bank(s):

Reward
Rebate
Bonus - provided that CFPB’s definition is met; https://www.consumerfinance.gov/eregulations/1030-2/2011-31727#1030-2-b-2

If user is to receive interest payments through a separate commercial agreement between Platform and a financial institution, other than Synapse’s partner bank(s), Synapse must be made aware. Additionally, the Truth in Savings agreement must be compliant, easily accessible, and clearly separate from the marketing of services that Synapse provides to Platform.

It is the platform's responsibility to comply with all Truth in Savings requirements/regulations if contracting with a third party financial institution.
It is the platform’s responsibility to avoid any language or claims that would mislead a user to believe services or products provided by a third party are provided by Synapse or Synapse’s banking partners.

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a new IC-Deposit Account must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a "settings", or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

FDIC Insurance

The platform will not claim to be FDIC insured directly, the accounts are insured through Synapse’s partner bank(s). Account insurance coverage is subject to FDIC rules and limitations.

For all pages including references to transactions or funds held in a User’s IC-Deposit Account, or bank services in the Deposit Agreement, include the following in the footer of the webpage and/or application screen:

📜
Banking services are provided by Synapse’s partner bank(s), Member(s) FDIC.

Endorsements

Additionally, the FTC has responded to questions regarding endorsements. Please see the following guidance:

https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking

Non-Interest-Bearing Fiduciary ("FBO") Deposit Account (SUBACCOUNT-US node)

Fiduciary accounts are deposit accounts established by the platform for the benefit of one or more other parties, also known as principals. The non-interest bearing sub-accounts do not accrue interest on deposited funds.

Marketing of non-interest-bearing FBO deposit accounts must comply and follow all guidelines of the appropriate regulatory bodies. Enforcement actions may be brought upon by:

The Federal Trade Commission ("FTC")
Consumer Financial Protection Bureau ("CFPB")

General Disclosures

The platform will adhere to the following verbiage and placement requirements, also detailed in the Marketing/Disclosure Guidelines. Additionally, the Platform will not reference Synapse or Synapse’s partner banks(s) in any other way without express written permission from the respective entity.

The Platform will not misrepresent their relationship to Synapse or Synapse’s partner bank(s), nor will they claim a direct relationship with Synapse’s partner bank(s). To explain the association, disclosures will include language similar to:

📜
The Platform partners with Synapse, our third-party bank software provider and agent of Synapse’s partner bank(s), Member(s) FDIC, to open these accounts.

If a User is opening a SUBACCOUNT-US Node, include a checkbox and the following verbiage on the page the User is created:

📜
By using our services, you agree to Synapse’s Terms of Service and Privacy Policy.

The following words shall be hyperlinks:

"Terms of Service"
"Privacy Policy"

Note: Platform’s FBO account is a Fiduciary Deposit Account with Synapse’s partner bank(s) titled in Platform’s legal name "for benefit of" Platform’s Users. The FBO account is subject to the Deposit Account Agreement, Privacy Policy, and related FBO agreement found here.

Include our contact information on your customer support page.

📜
Bank services are provided by Synapse’s partner bank(s), Member(s) FDIC, through our banking software provider, Synapse. To report a complaint relating to the bank services, email [email protected].

TIS Disclosure

Fiduciary deposit accounts are established by the platform, for the benefit of their end-users. Therefore, Synapse will not provide a TIS disclosure for end users. The platform is responsible for disclosing all terms, conditions, and requirements for these accounts. This should be compiled in a clear and conspicuous manner, similar to a Reg DD compliant, TIS disclosure.

For guidelines and model forms see: 12 CFR 230 https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol4/CFR-2012-title12-vol4-sec230-4

If platform intends to provide users with financial incentives to maintain balances, as opposed to an interest-bearing account, the following terms cannot be used:

Interest
Yield
Annual Percentage Rate ("APR")
Annual Percentage Yield ("APY")

As an alternative, platform may use the following:

Reward
Rebate
Bonus - provided that CFPB qualifications are met; https://www.consumerfinance.gov/eregulations/1030-2/2011-31727#1030-2-b-2

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a new Fiduciary Account must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a “settings”, or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

FDIC Insurance

Fiduciary accounts may be eligible for Pass-Through FDIC Insurance. However, coverage is subject to FDIC rules and limitations; the Platform should consult with its own legal counsel prior to disclosing that the FBO accounts are insured. The platform will not claim to be FDIC insured directly, the accounts are insured through Synapse’s partner bank(s), if eligible.

📜
Banking services are provided by Synapse’s partner bank(s), Member(s) FDIC.

Endorsements

The use of endorsements and testimonials in advertising is subject to the same UDAAP laws as any direct marketing by the Platform. The FTC has released additional guidance, to which the Platform is required to adhere. Synapse strongly suggests screening procedures are implemented to ensure any endorsements or testimonials comply with the FTC’s final guide. See: 16 CFR Part 255 (https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-publishes-final-guides-governing-endorsements-testimonials/091005revisedendorsementguides.pdf).

Additionally, the FTC has responded to questions regarding endorsements. Please see the following guidance:

https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking

Interest Bearing Fiduciary (“FBO”) Deposit Account (IB-SUBACCOUNT-US node)

Fiduciary accounts are deposit accounts established by the platform for the benefit of one or more other parties, also known as principals. Interest bearing sub-accounts accrue interest on account daily balances. Due to the nature of fiduciary accounts on behalf of multiple users, these accounts will be transactional.

Marketing of interest-bearing fiduciary deposit accounts must comply and follow all guidelines of the appropriate regulatory bodies. Enforcement actions may be brought upon by:

The Federal Trade Commission (“FTC”)
Consumer Financial Protection Bureau (“CFPB”)

General Disclosures

The platform will adhere to the following verbiage and placement requirements, also detailed in the Marketing/Disclosure Guidelines. Additionally, the Platform will not reference Synapse or Synapse’s partner bank(s) in any other way without express written permission from the respective entity.

📜
The Platform partners with Synapse, our third-party bank software provider and agent of Synapse’s partner bank(s), Member(s) FDIC, to open these accounts.

If a User is opening an IB-SUBACCOUNT-US Node, include a checkbox and the following verbiage on the page the User is created:

📜
By using our services, you agree to Synapse’s Terms of Service and Privacy Policy.

The following words shall be hyperlinks:

"Terms of Service"
"Privacy Policy"

Note: Platform’s FBO account is a Fiduciary Deposit Account with Bank titled in Platform’s legal name "for benefit of" Platform’s Users. The FBO account is subject to the Deposit Account Agreement, Privacy Policy, and related agreements found here.

Include our contact information on your customer support page.

📜
Bank services are provided by Synapse’s partner bank(s), Member(s) FDIC, through our banking software provider, Synapse. To report a complaint relating to the bank services, email [email protected].

TIS Disclosure

Fiduciary deposit accounts are established by the platform, for the benefit of their end-users. Therefore, Synapse will not provide a TIS disclosure for end users. The platform is responsible for disclosing all terms, conditions, and requirements for these account. This should be compiled in a clear and conspicuous manner, similar to a Reg DD compliant, TIS disclosure.

For guidelines and model forms see: 12 CFR 230 https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol4/CFR-2012-title12-vol4-sec230-4

If platform intends to provide users a portion of the interest they receive for this account, the following terms cannot be used, as it is not truly paid by the bank:

Interest
Yield
Annual Percentage Rate (“APR”)
Annual Percentage Yield (“APY”)

As an alternative, platform may use the following:

Reward
Rebate
Bonus - provided that CFPB qualifications are met; https://www.consumerfinance.gov/eregulations/1030-2/2011-31727#1030-2-b-2

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a new IB Fiduciary Account must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a “settings”, or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

FDIC Insurance

Fiduciary accounts may be eligible for Pass-Through FDIC Insurance. However, coverage is subject to FDIC rules and limitations and spec sheet requirements must be met to be eligible. The platform will not claim to be FDIC insured directly, the accounts are insured through Synapse’s partner bank(s), if eligible.

📜
Banking services are provided by Synapse’s partner bank(s), Member(s) FDIC.

Endorsements

The use of endorsements and testimonials in advertising is subject to the same UDAAP laws as any direct marketing by the Platform. The FTC has released additional guidance, to which the Platform is required to adhere. Synapse strongly suggests screening procedures are implemented to ensure any endorsements or testimonials comply with the FTC’s final guide. See: 16 CFR Part 255 (https://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-publishes-final-guides-governing-endorsements-testimonials/091005revisedendorsementguides.pdf).

Additionally, the FTC has responded to questions regarding endorsements. Please see the following guidance:

https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking

Custodial Accounts

Custodial accounts are held on behalf of the users, by Synapse’s partner bank(s). These are non-interest bearing, transactional custodial accounts, and must be marketed as such.

General Disclosures

The platform will adhere to the following verbiage and placement requirements, also detailed in their spec sheet. Additionally, the Platform will not reference Synapse or Synapse’s partner bank(s) in any other way without express written permission from the respective entity.
The Platform will not misrepresent their relationship to Synapse or Synapse’s partner bank(s), nor will they claim a direct relationship with Synapse’s partner bank(s). To explain the association, disclosures will include language similar to:

📜
The Platform partners with Synapse, our third-party bank software provider and agent of Synapse’s partner bank(s), Member(s) FDIC, to open these accounts.

If a user is opening a Custodial Account (SYNAPSE-US), they must agree to the Custodial Account Agreement, with the following language:

📜
By establishing a custodial account, you authorize Synapse’s partner bank(s), Member(s) FDIC, to hold your deposits for your benefit in an account (“Trust Account”) by agreeing to the Custodial Account Establishment Agreement.

“Custodial Account Agreement” shall be a hyperlink to the Platform’s Custom Agreement, this will be provided by Synapse.

TIS Disclosures

As stated above, custodial accounts are held by Synapse’s partner bank(s), for the benefit of the platform’s end users. Therefore, Synapse will not be providing TIS disclosures. Platforms will be responsible for disclosing all terms, conditions, and requirements for these accounts. This should be compiled in a clear and conspicuous manner, similar to a Reg DD compliant, TIS disclosure, as it applies.

For guidelines and model forms see: 12 CFR 230 https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol4/CFR-2012-title12-vol4-sec230-4

If Platform intends to provide users with financial incentives to maintain balances, on a non-interest-bearing account, it must be clear that the incentive is being paid by the platform. The following terms cannot be used:

Interest
Yield
Annual Percentage Rate (“APR”)
Annual Percentage Yield (“APY”)

As an alternative, Platform may use the following:

Reward
Rebate
Bonus - provided that CFPB’s definition is met; https://www.consumerfinance.gov/eregulations/1030-2/2011-31727#1030-2-b-2

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a new Custodial Account must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a “settings”, or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

FDIC Insurance

The platform will not claim to be FDIC insured directly, the accounts are insured through. Synapse’s partner bank(s). Account insurance coverage is subject to FDIC rules and limitations.

For all pages including references to transactions or funds held in a User’s Custodial Account, or bank services in the Deposit Agreement, include the following the footer of the webpage and/or application screen.

📜
Banking services are provided by Synapse’s partner bank(s), Member(s) FDIC.

Fixed Deposit Accounts

Fixed Deposit Accounts are interest-bearing accounts with a fixed maturity date.

These accounts are not transactional accounts; principal may not be withdrawn without closing the account and incurring an early withdrawal penalty and additional deposits may not be made once the account is opened, prior to maturity. The user may withdraw interest once it is credited to the account, prior to maturity, without penalty. Interest can be withdrawn anytime after it is credited to the account.

Fixed Deposit Accounts are offered for multiple term lengths, with varying interest rates and early withdrawal penalties. These details will be disclosed within the agreement and specification sheet with each Platform.

These accounts will not automatically renew upon maturity, the funds will be released and the account will transition to a non-interest bearing Demand Deposit Account.

TIS Disclosures

All Fixed Deposit Accounts must be accompanied by a Regulation DD compliant Truth in Savings disclosure, this will be provided by Synapse, included in the deposit agreement.

For specific requirements, see: 12 CFR 230 https://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol4/CFR-2012-title12-vol4-sec230-4

A Regulation DD compliant Truth in Savings disclosure will be provided, clearly stating terms and conditions, including interest rates. As stated above, this account earns interest paid by Synapse’s partner bank(s), therefore the following terms may be used for interest paid by Synapse’s partner bank(s) only:

Interest
Yield
Annual Percentage Rate (“APR”)
Annual Percentage Yield (“APY”)

Reward
Rebate
Bonus - provided that CFPB’s definition is met; https://www.consumerfinance.gov/eregulations/1030-2/2011-31727#1030-2-b-2

If a user is to receive interest payments through a separate commercial agreement between a platform and a financial institution, other than Synapse’s partner bank(s), Synapse must be made aware. Additionally, the Truth in Savings agreement must be compliant, easily accessible, and clearly separate from the marketing of services that Synapse provides to the platform.

It is the platform's responsibility to comply with all Truth in Savings requirements/regulations if contracting with a third party financial institution.
It is the platform’s responsibility to avoid any language or claims that would mislead a user to believe services or products provided by a third party are provided by Synapse or Synapse’s banking partners.

Additionally, for Fixed Deposit Accounts, Reg DD requires that users are informed of upcoming maturity dates at least ten (10) calendar days before the maturity of the existing account. The Platform may opt in for Synapse-generated notices to ensure compliance or they may send these notifications themselves. This must include:

The maturity date
The date interest will be paid to the account
A disclosure stating the fixed deposit account will not automatically renew, and the user must request a new term, if they wish.

General Disclosures

The Platform’s disclosures will include language describing their relationship to Synapse and Synapse’s partner bank(s) similar to:

📜
The Platform uses Synapse, a third-party bank software provider and agent of Synapse’s partner bank(s), Member(s)r FDIC, to open these accounts.

If a user opens a Fixed Deposit Account (FixedDeposit_US Node), they must agree to the Deposit Agreement. The following verbiage must be included on the page where the account is created:

📜
The bank services are provided by Synapse’s partner bank(s), Member(s) FDIC.. By opening a Fixed Deposit Account on [Platform Name], you agree to the Deposit Agreement.

“Deposit Agreement” must be a hyperlink to the Platform’s custom agreement, provided by Synapse.

Platform should include our contact information on their customer support page.

📜
Bank services are provided by Synapse’s partner bank(s), Member(s) FDIC, through our banking software provider, Synapse. To report a complaint relating to the bank services, email [email protected].

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a new Fixed Deposit Account must be compiled in a central location, and easily accessed by the Users. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a “settings”, or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

FDIC Insurance

The platform will not claim to be FDIC insured directly, the accounts are insured through Synapse’s partner bank(s). Account insurance coverage is subject to FDIC rules and limitations.

For all pages including references to transactions or funds held in a User’s Fixed Deposit Account, or bank services in the Deposit Agreement, include the following the footer of the webpage and/or application screen.

📜
Banking services are provided by Synapse’s partner bank(s), Member(s) FDIC.

Transaction Products

Automatic Clearing House (“ACH”) Payments

ACH payments are electronic payments that are created when the customer gives an originating institution, corporation, or other customer (originator) authorization to debit directly from the customer's checking or saving account for the purpose of bill payment. ACH transactions are managed by NACHA Operating Rules, which clearly define the rules and responsibilities of ACH network participants. ACH payments are subject to Regulation E, which provides application guidelines for the laws set forth in Dodd-Frank regarding electronic funds transfers. Reg E is enforced by the Consumer Financial Protection Bureau.

Marketing of ACH payment services, and disclosures associated with those services, must comply and follow all guidelines of the appropriate regulatory bodies. Enforcement actions may be brought upon by:

The Federal Trade Commission (“FTC”)
Consumer Financial Protection Bureau (“CFPB”)
Electronic Payments Association (“NACHA”)

Reg E Requirements

In addition to the CFPB UDAAP requirements, Synapse will require the Platform to be compliant with all requirements set forth in Regulation E (“Reg E”), and the Electronic Fund Transfer Act (“EFTA”) (https://www.federalreserve.gov/boarddocs/supmanual/cch/efta.pdf) to the extent applicable. This Act states:

Disclosures must be clear and easily understood, in writing, and in a form the consumer may keep.
- The disclosures may be provided via electronic form if the consumer has affirmatively consented, after receiving a notice compliant with the E-Sign Act.
Disclosures may be made available in a language, other than English, if they are also made available in English upon request.
Disclosures must be compliant with Part 205.7 of Reg E, detailing the timing and content pertaining to initial disclosures.
Disclosures are required to contain the following information as it applies:
- Liability of the user for unauthorized electronic funds transfers
- Telephone number and address for the user to report possible fraud
- Platform’s business days
- Limitations on frequency or dollar amounts related to transfers
- Any fee that may be imposed
- Summary of the user’s right to receipts and periodic statements
- Summary on the user’s right to stop payment, and the procedures for doing so
- The liability of the Platform to the user for failure to make or stop certain transfers
- The circumstances under which, in the course of business, the Platform may provide information related to the user’s account to third parties
- Error resolution notice (See Model form A-3 https://www.consumerfinance.gov/eregulations/1005-A/2013-19503#1005-A-2-i-)
Any notice of a change of terms must be mailed or delivered to the user at least 21 days before the effective date

The Platform must provide contact information for Users to submit ACH disputes (written statement of unauthorized debit). This information is included in the receipt confirmation, sent to users, but should also be listed on their contact page within their website or application, and should be easy to locate.

We have detailed procedures for ACH disputes, detailed in the “ACH Error Resolution” standard operating procedure, in compliance with Regulation E.

LEP

When processing ACH transfers, customer bases with Limited English Proficiency (“LEP”), should be considered. CFPB released guidance related to LEP, as it relates to UDAAP law, ensuring disclosures are clear to consumers. Additionally, 12 CFR Part 1005 of Regulation E states:

Required disclosures must be made available in English and, if applicable, either in

Each of the foreign languages principally used by the remittance transfer provider to advertise, solicit, or market remittance transfer services, at offices where a sender can conduct a transaction or assert an error; or
The foreign language primarily used by the sender with the remittance transfer provider to conduct the transaction, provided that such foreign language is used by the transfer provider to advertise, solicit, or market transfer services

General Disclosures

The Platform will adhere to the verbiage and placement requirements, set forth in the Marketing/Disclosure Guidelines, in their website and/or application. Additionally, the Platform will not reference Synapse or Synapse’s partner bank(s) in any other way, without express written permission from the respective entity.

If you are debiting User accounts via ACH (i.e. a User’s ACH-US node), include a checkbox and the following appropriate ACH authorization verbiage on the web page the transaction is being created:

Single Transaction Authorization:

📜
I authorize [Platform Name] to debit the account indicated for the amount noted on today’s date. I will not dispute [Platform Name] debiting my account, so long as the transaction corresponds to the terms in this online form and my agreement with [Platform Name].

Recurring Transaction Authorization

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I authorize [Platform Name] to debit the account indicated for the recurring transactions according to the online form and my agreement with [Platform Name]. I will not dispute so long as the transactions correspond to such terms. This payment authorization is valid and will remain effective unless I cancel this authorization by emailing [Platform Name] at [Platform Email] at least 3 business days in advance.

Additionally, please include the following Electronic Fund Disclosure Statement in your Terms of Service:

Electronic Fund Transfer Disclosure Statement

📜
The following disclosures are made in accordance with the federal law regarding electronic payments, deposits, transfers of funds and other electronic transfers to and from your account(s). There may be limitations on account activity that restrict your ability to make electronic fund transfers. Any such limits are disclosed in the appropriate agreements governing your account.
A. Definitions: Electronic Fund Transfer: Any transfer of funds, other than a transaction originated by check, draft or similar paper instrument, that is initiated through an electronic device or computer to instruct us to debit or credit an account. Electronic Fund Transfers include such electronic transactions as direct deposits or withdrawals of funds, transfers initiated via telephone, website or mobile application. Preauthorized Electronic Fund Transfer: An Electronic Fund Transfer that you have authorized in advance to recur at substantially regular intervals; for example, direct deposits into or withdrawal of funds out of your account.*
B. Your Liability: Authorized Transfers: You are liable for all Electronic Fund Transfers that you authorize, whether directly or indirectly. Unauthorized Transfers: Tell us at once if you believe your account or PIN or Access Information (as defined below) is lost or stolen or has been or may be subject to unauthorized Electronic Fund Transfers. Support message us immediately to keep your possible losses to a minimum. You could lose all the money in your account(s). If you tell us within two (2) business days after learning of the loss or theft of your account access device, or after learning of any other unauthorized transfers from your account involving your account access device, you can lose no more than $50 if Electronic Fund Transfers are made without your permission. For these transactions, if you DO NOT tell us within two (2) business days after learning of the loss, theft or unauthorized use, and we can establish that we could have prevented the unauthorized transfer(s) if you had told us in time, you could lose as much as $500. Also, if your periodic account statement shows unauthorized transfers and you DO NOT tell us within sixty (60) days after the statement was delivered to you, you may not get back any money you lose after the sixty (60) day period if we can prove that we could have prevented the unauthorized transfer(s) if you had told us in time. If an extenuating circumstance (such as extended travel or hospitalization) prevents you from promptly notifying us of a suspected lost or stolen access device or of any other suspected unauthorized transfer(s), the time periods specified in this Section B may be extended for a reasonable period.*

Include our contact information on your customer support page.

📜
Bank services are provided by Synapse’s partner bank(s), Member(s) FDIC, through our banking software provider, Synapse. To report a complaint relating to the bank services, email [email protected].

Please include the following transaction and account notifications.

Confirmation Screen and Receipts

Enable your Users to view and print a transaction receipt immediately after creating a transaction form that contains:

Full details of the scheduled transaction(s) (i.e. payment amount and date, and, if recurring transactions:, the frequency of transactions, start date, end date or number of transactions and disclosure);
A transaction number for any transaction processed as part of the scheduled payment(s) when it was entered;
Contact information for your support and Synapse ([email protected]); and
Information on how to cancel transaction (ex: "Click here to cancel transaction.")

If recurring transaction, include the following text on the confirmation screen, with “click here” as a hyperlink to the page where the customer may cancel the transaction:

📜
To cancel this transaction, click here. This is an authorized recurring debit from your account if you would like to cancel future payments, please email us at [Platform Email] with at least 3 business days notice.

Email Notifications and Receipts

At the following times, email a transaction receipt (as detailed above) to Users and keep copies of the emails for 2 years after the transaction was settled:

After each transaction is created;
Before a new transaction is created if part of recurring transactions; and
After funds have settled into a User Deposit Account (if applicable) with information on how to access those funds on your application

Changes to Scheduled Transactions

Email Users in advance of any changes to a scheduled transaction amount, frequency or timing.

Statements: Email Users monthly statements with their transaction history and, if applicable, balances held in the User’s Deposit Account (ending and beginning balances).

Platform will include the following language in its agreement with Users for resolving errors and associated time periods, relating to transactions for Users not opening Deposit Accounts.

Errors or Questions about Transactions

Please contact us by emailing us at [Platform Name] (1) if you believe a transaction receipt or a statement is wrong, or (2) if you need more information about a transaction on the receipt or statement. For consumer accounts, we must hear from you no later than sixty (60) days after we sent you the first statement on which the error or problem appeared. For business accounts, we must hear from you within one (1) business day of us sending you a receipt. Your inquiry must include: (x) your name, email associated with your account, and your account number (if available); (y) a description of the error or the transaction you are unsure about, and a clear explanation of why you believe there is an error or why you need more information; and (z) the dollar amount of the suspected error. If you tell us orally, we may require that you send us your inquiry via email within ten (10) business days.

Time Periods

Ten-Day Time Period: [Platform Name] will investigate promptly and, except as otherwise provided in this paragraph, shall determine whether an error occurred within 10 business days of receiving a notice of error. [Platform Name] shall report the results to the consumer in writing within three business days after completing its investigation. [Platform Name] shall correct the error within one business day after determining that an error occurred.

Forty Five-Day Time Period: If [Platform Name] is unable to complete its investigation within 10 business days, [Platform Name] may take up to 45 days from receipt of a notice of error to investigate and determine whether an error occurred, provided [Platform Name] does the following:

(1) Provisionally credits the consumer's account in the amount of the alleged error (including interest where applicable) within 10 business days of receiving the error notice. [Platform Name] need not provisionally credit the consumer's account if:

[Platform Name] does not receive written confirmation within 10 business days of an oral notice of error; or
The alleged error involves an account that is subject to Regulation T (Securities Credit by Brokers and Dealers, 12 CFR part 220)

(2)Informs the consumer, within two business days after the provisional crediting, of the amount and date of the provisional crediting and gives the consumer full use of the funds during the investigation;

(3) Corrects the error, if any, within one business day after determining that an error occurred; and

(4) Reports the results to the consumer within three business days after completing its investigation (including, if applicable, notice that a provisional credit has been made final).

(3) Extension of time periods. The time periods described above may be extended as follows:

Extension of Ten-Day Time Period - The time limit for resolution is extended to 20 business days in place of 10 business days if the notice of error involves an electronic fund transfer to or from the account within 30 days after the first deposit to the account was made; or
Extension of Forty Five-Day Time Period - The time limit for resolution is extended to 90 days in place of 45 days for completing an investigation, if a notice of error involves an electronic fund transfer that occurred within 30 days after the first deposit to the account was made.

Legal Landing Page

You must provide a link in your website footer and/or application with a landing page substantially similar to http://Synapse.com/legal that includes links to all of the applicable legal agreements, including:

Deposit Agreement
Terms of Service
Privacy Policy

Wire Transfers

Wire transfers are electronic transfers, considered remittance transfers under US law, between two financial institutions.

Per our legal agreement, Platforms must provide the following disclosures to their users and implement security procedures as detailed below. This is to ensure the users understand the risks associated with initiating a wire transfer, and the finality of the transaction.

Time Restrictions

Daily time restrictions for wire acceptance should be noted in disclosures and an FAQ page. 10:00 AM PST is the cut off time for international wires,1:00 PM PST is the cut off time for domestic wire transfers. Any wire transfer instructions received after these times will be processed the following business day.

Security Procedures

All users will be required to use a Two-Factor Authentication control, in addition to their login, to authorize a wire transfer. Additionally, users must agree that this control is an appropriate security procedure, designed to verify the authenticity of the order, and not to detect errors in transmission.

No Cancellation

All wire requests are final and are not subject to recall orders or stop payments.

Payment Order

Users may only initiate a wire transaction via the Platform’s website. The user is solely responsible for the accuracy of the information contained in the payment order. The wire transaction will be completed relying exclusively on the information provided by the user.

Authorization to Transfer Funds

Via the wire services, users must authorize Synapse’s partner bank(s) to execute payment orders on their behalf and to debit the user's account specified in the payment order for the amount of the wire transfer.

Reg E Requirements

Per Regulation E, outgoing foreign wire transfers, in excess of USD 15, sent by consumers must be accompanied by a disclosure including the following information:

Exchange rate
Fees and taxes to be collected
Any fees charged by the companies’ agent abroad and intermediary institutions, if applicable
If appropriate, a disclaimer that additional fees and foreign taxes may apply
A receipt must be provided as well, listing:
When the funds will be available with the receiving institution
Information regarding the consumer’s right to cancel the transfer
Information outlining steps to take to resolve an error
How to submit complaints

In addition, the regulation generally requires:

Consumers have 30 minutes to cancel a transaction
Companies must investigate any errors or issues regarding a wire transfer, reported by the consumer
Companies are held responsible for mistakes made by their employees when accepting and processing wire transfers

LEP

When processing wire transfers, customer bases with Limited English Proficiency (“LEP”), should be considered. CFPB released guidance related to LEP, as it relates to UDAAP law, ensuring disclosures are clear to consumers. Additionally, 12 CFR Part 1005 of Regulation E states:

Required disclosures must be made available in English and, if applicable, either in

Each of the foreign languages principally used by the remittance transfer provider to advertise, solicit, or market remittance transfer services, at offices where a sender can conduct a transaction or assert an error; or
The foreign language primarily used by the sender with the remittance transfer provider to conduct the transaction, provided that such foreign language is used by the transfer provider to advertise, solicit, or market transfer services

Interchange Processing

Synapse FI supports interchange processing for credit and debit cards to enable Platforms to fund user accounts with cards or send disbursements back to cards. Interchange is considered an EFT and is subject to Reg E requirements.

Reg E Requirements

Disclosures must be clear and easily understood, in writing, and in a form the consumer may keep.
- The disclosures may be provided via electronic form if the consumer has affirmatively consented, after receiving a notice compliant with the E-Sign Act.
Disclosures may be made available in a language, other than English, if they are also made available in English upon request.
Disclosures must be compliant with Part 205.7 of Reg E, detailing the timing and content pertaining to initial disclosures.
Disclosures are required to contain the following information as it applies:
- Liability of the user for unauthorized electronic funds transfers
- Telephone number and address for the user to report possible fraud
- Platform’s business days
- Limitations on frequency or dollar amounts related to transfers
- Any fee that may be imposed
- Summary of the user’s right to receipts and periodic statements
- Summary on the user’s right to stop payment, and the procedures for doing so
- The liability of the Platform to the user for failure to make or stop certain transfers
- The circumstances under which, in the course of business, the Platform may provide information related to the user’s account to third parties
- Error resolution notice (See Model form A-3 https://www.consumerfinance.gov/eregulations/1005-A/2013-19503#1005-A-2-i-)
Any notice of a change of terms must be mailed or delivered to the user at least 21 days before the effective date

General Disclosures

If you are debiting User accounts via interchange (i.e. a User’s ACH-US node), include a checkbox and the following appropriate ACH authorization verbiage on the web page the transaction is being created:

Single Transaction Authorization:

📜
I authorize [Platform Name] to debit the card indicated for the amount noted on today’s date. I will not dispute [Platform Name] debiting my account, so long as the transaction corresponds to the terms in this online form and my agreement with [Platform Name].

Recurring Transaction Authorization:

📜
I authorize [Platform Name] to debit the card indicated for the recurring transactions according to the online form and my agreement with [Platform Name]. I will not dispute so long as the transactions correspond to such terms. This payment authorization is valid and will remain effective unless I cancel this authorization by emailing [Platform Name] at [Platform Email] at least 3 business days in advance.

Additionally, please include the following Electronic Fund Disclosure Statement in your Terms of Service:

Electronic Fund Transfer Disclosure Statement

📜
The following disclosures are made in accordance with the federal law regarding electronic payments, deposits, transfers of funds and other electronic transfers to and from your account(s). There may be limitations on account activity that restrict your ability to make electronic fund transfers. Any such limits are disclosed in the appropriate agreements governing your account.*
A. Definitions: Electronic Fund Transfer: Any transfer of funds, other than a transaction originated by check, draft or similar paper instrument, that is initiated through an electronic device or computer to instruct us to debit or credit an account. Electronic Fund Transfers include such electronic transactions as direct deposits or withdrawals of funds, transfers initiated via telephone, website or mobile application. Preauthorized Electronic Fund Transfer: An Electronic Fund Transfer that you have authorized in advance to recur at substantially regular intervals; for example, direct deposits into or withdrawal of funds out of your account.
B. Your Liability: Authorized Transfers: You are liable for all Electronic Fund Transfers that you authorize, whether directly or indirectly. Unauthorized Transfers: Tell us at once if you believe your account or PIN or Access Information (as defined below) is lost or stolen or has been or may be subject to unauthorized Electronic Fund Transfers. Support message us immediately to keep your possible losses to a minimum. You could lose all the money in your account(s). If you tell us within two (2) business days after learning of the loss or theft of your account access device, or after learning of any other unauthorized transfers from your account involving your account access device, you can lose no more than $50 if Electronic Fund Transfers are made without your permission. For these transactions, if you DO NOT tell us within two (2) business days after learning of the loss, theft or unauthorized use, and we can establish that we could have prevented the unauthorized transfer(s) if you had told us in time, you could lose as much as $500. Also, if your periodic account statement shows unauthorized transfers and you DO NOT tell us within sixty (60) days after the statement was delivered to you, you may not get back any money you lose after the sixty (60) day period if we can prove that we could have prevented the unauthorized transfer(s) if you had told us in time. If an extenuating circumstance (such as extended travel or hospitalization) prevents you from promptly notifying us of a suspected lost or stolen access device or of any other suspected unauthorized transfer(s), the time periods specified in this Section B may be extended for a reasonable period.

Please include the following transaction and account notifications.

Confirmation Screen and Receipts

Enable your Users to view and print a transaction receipt immediately after creating a transaction form that contains:

Full details of the scheduled transaction(s) (i.e. payment amount and date, and, if recurring transactions:, the frequency of transactions, start date, end date or number of transactions and disclosure);
A transaction number for any transaction processed as part of the scheduled payment(s) when it was entered;
Contact information for your support and Synapse ([email protected]); and
Information on how to cancel transaction (ex: "Click here to cancel transaction.")

If recurring transaction, include the following text, with “click here” as a hyperlink to the page where the customer may cancel the transaction:

📜
To cancel this transaction, click here. This is an authorized recurring debit from your card, if you would like to cancel future payments, please email us at [Platform Email] with at least 3 business days notice.

Email Notifications and Receipts

At the following times, email a transaction receipt (as detailed above) to Users and keep copies of the emails for 2 years after the transaction was settled:

After each transaction is created;
Before a new transaction is created if part of recurring transactions; and
After funds have settled into a User Deposit Account (if applicable) with information on how to access those funds on your application

Changes to Scheduled Transactions

Email Users in advance of any changes to a scheduled transaction amount, frequency or timing.

Statements

Email Users monthly statements with their transaction history and, if applicable, balances held in the User’s Deposit Account (ending and beginning balances).

Platform will include the following language in its agreement with Users for resolving errors relating to transactions for Users not opening Deposit Accounts:

Errors or Questions about Transactions

Please contact us by emailing us at [Platform Email] (1) if you believe a transaction receipt or a statement is wrong, or (2) if you need more information about a transaction on the receipt or statement. For consumer accounts, we must hear from you no later than sixty (60) days after we sent you the first statement on which the error or problem appeared. For business accounts, we must hear from you within one (1) business day of us sending you a receipt. Your inquiry must include: (x) your name, email associated with your account, and your account number (if available); (y) a description of the error or the transaction you are unsure about, and a clear explanation of why you believe there is an error or why you need more information; and (z) the dollar amount of the suspected error. If you tell us orally, we may require that you send us your inquiry via email within ten (10) business days.

Protecting Card Data

Platforms are expected to be PCI compliant if they will be accepting, transmitting, or storing any cardholder data. It is the Platform’s responsibility to determine the appropriate level of compliance for their processing or handling volume. In regards to marketing material, if the Platform will be displaying images of cards in advertisements, on websites or mobile applications, or any other communications, the Platform must list sequential or repeating numbers (1234…, 1111...), x’s, or dashes in place of card numbers and security codes to avoid potentially compromising real card data.

Checks

A check is a written, dated, and signed instrument that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee.

While there are no longer Reg E requirements for disclosures regarding check conversions and same-day ACH, it may become a UDAAP issue when the consumer does not expect a physical check to clear right away. As a best practice, the Platform should be transparent when checks are converted to ACH payments as they may be debited more quickly than expected.

Checks are customizable, however, the MICR line must remain compatible with OCR devices.

Visa/Mastercard Debit Card Issuance

A consumer debit card is a payment card that can be used when making purchases, the funds are debited directly from the user’s deposit account when performing a transaction. It can be a physical or virtual card. Debit cards are not an extension of credit and purchases are debited directly from the user’s deposit accounts, they should be marketed in a manner true to the capabilities of the product.

Disclosures must be clear and easily understood, in writing, and in a form the consumer may keep.
- The disclosures may be provided via electronic form if the consumer has affirmatively consented, after receiving a notice compliant with the E-Sign Act.
Disclosures may be made available in a language, other than English, if they are also made available in English upon request.
Disclosures must be provided at the time a consumer contracts for an electronic fund transfer service or before the first electronic fund transfer is made involving the consumer's account.
Disclosures are required to contain the following information as it applies:
- Liability of the user for unauthorized electronic funds transfers
- Telephone number and address for the user to report possible fraud
- Platform’s business days
- Limitations on frequency or dollar amounts related to transfers
- Any fee that may be imposed
- Summary of the user’s right to receipts and periodic statements
- Summary on the user’s right to stop payment, and the procedures for doing so
- The liability of the Platform to the user for failure to make or stop certain transfers
- The circumstances under which, in the course of business, the Platform may provide information related to the user’s account to third parties
- Error resolution notice (See Model form A-3 https://www.consumerfinance.gov/eregulations/1005-A/2013-19503#1005-A-2-i-)
Any notice of a change of terms must be mailed or delivered to the user at least 21 days before the effective date, if it will result in:
- Increased fees for the consumer;
- Increased liability for the consumer;
- Fewer types of available electronic fund transfers; or
- Stricter limitations on the frequency or dollar amount of transfers

Disclosures

The platform will adhere to the following verbiage and placement requirements. Additionally, the Platform will not reference Synapse or Synapse’s in any other way without express written permission from the respective entity.

If a User is opening a CARD-US Node, it will be linked to a DDA. Include a checkbox and the following verbiage on the page that the User is created:

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The bank services are provided by Synapse’s partner bank(s), Member(s) FDIC. By opening a Visa Debit Card, linked to a deposit account on [Platform Name], you agree to the Deposit Agreement and Consumer Visa Card Agreement"

“Deposit Agreement” and “Consumer Visa Card Agreement” shall be hyperlinks to the Platform’s custom agreements, provided by Synapse.

If a User is opening a SUBCARD-US Node, it will be linked to an FBO deposit account. Include a checkbox and the following verbiage on the page the User is created:

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By using our services and opening a Visa Debit Card, you agree to Synapse’s partner bank’s Consumer Visa Card Agreement.

“Consumer Visa Card Agreement” shall be hyperlink to the platform’s custom agreement, provided by Synapse.

Note: Platform’s FBO account is a Fiduciary Deposit Account with Synapse’s partner bank(s) titled in Platform’s legal name “for benefit of” Platform’s Users. The FBO account is subject to the Deposit Account Agreement, Privacy Policy, and related agreement found here.

Legal Agreements Accessibility

All disclosures, agreements, and policies required for creating a user must be compiled in a central location, and easily accessed by the Users, including the Cardholder Agreement. This may be accomplished by one of the following:

Include links to each document in a header or footer within your website or application.
Compile all documents on a legal landing page, clearly labeled and easily found on the website or application.
Compile all documents within a “settings”, or similar, page under the User’s profile.
1. If a User must have login credentials to access this information, the TOS, Privacy Policies, and Agreements must be emailed to the User, once they agree, so that they maintain access to the documents in the event they close their account.

Visa Limitations

Proposed designs for cards and accompanying mailers must be submitted for approval from Visa, CPI Card Group, and Synapse prior to production, and each time a change is made.

Protecting Card Data

Reg E Disputes

The Platform must provide contact information for Users to submit debit card transaction disputes. This information is included in the Consumer Visa Card Agreement, but should also be listed on their contact page within their website or application, and should be easy to locate.

We have detailed procedures for cardholder disputes, detailed in the “Cardholder Error Resolution” standard operating procedure, in compliance with Regulation E, as well as Visa’s zero liability policy.

Cryptocurrency Wallet/Exchange

FINRA Guidance as Best Practice

No Platform may make any false, exaggerated, unwarranted, promissory or misleading statements or claims in any communications and should not publish, circulate or distribute any communication that the Platform knows or has reason to know contains any untrue statement of a material fact or is otherwise false or misleading.
Platforms must ensure that disclosure, marketing, or advertising statements are clear and not misleading within the context in which they are made, and that they provide balanced treatment of risks and potential benefits. Communications must be consistent with the risks of fluctuating prices and the uncertainty of rates of return.
Platforms must consider the nature of the audience to which the communication will be directed and must provide details and explanations appropriate to the audience
Communications may not predict or project performance, imply that past performance will recur or make any exaggerated or unwarranted claim, opinion or forecast.

General Disclosures

When a user creates a digital currency wallet, they must agree to the Digital Currency Custody Account Agreement, with the following verbiage:
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The bank services are provided by Synapse’s partner bank(s), Member(s) FDIC. By opening a Digital Currency Wallet on [Platform Name], you agree to the Digital Currency Custody Account Agreement.

“Digital Currency Custody Account Agreement” must be a hyperlink to the Platform’s custom agreement, provided by Synapse.

In compliance with UDAAP law, Platforms will be required to disclose information regarding the terms of service. The following must be disclosed prior to account opening:

Any fees associated with services, including network fees
Any income generated from the exchange spread, if applicable
Whether the provider offers custodial or noncustodial accounts
- It should be made clear who will maintain control of the funds and private keys
Any eligibility requirements/restrictions

The Platform must be transparent regarding the risk of trading cryptocurrencies applicable to their services. The following disclosures must be provided to users, in a clear and conspicuous manner.

“Trading cryptocurrencies involves risk, and there is the potential of losing funds. Additionally, cryptocurrencies:
Are not FDIC Insured, or insured by any other federal agency
Are not deposits of or guaranteed by a bank
May lose value
Return on investment is not guaranteed”

The Platform must clarify which entities will be providing specific services. The following disclosure must be made clear to the Users and included within an FAQ page, or other similar resource, which is easy to locate.

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Digital currency will be held in digital wallets in the custody of Synapse’s partner banks, on your behalf. Synapse’s partner bank(s) may contract with third parties to provide wallet services as well as conversion functionality.
The Platform must disclose the following information regarding funds availability in relation to digital currency, and ensure Users understand that large transactions may not be processed immediately if they exceed the amount of that particular digital currency stored online at the time of the transaction.

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In order to keep funds within a digital wallet secure, a portion of the funds will be stored offline. Because of this, unusually large transactions may be delayed.

Non-Adviser Disclaimer

For cryptocurrency exchange platforms, language similar to the following must be included on the Terms of Service page as well as the FAQ page:

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[Platform Name] is not acting and cannot act as an advisor, including as to any financial, legal, investment, insurance and/or tax matters. Any information provided by [Platform Name] is for general information only. Any decision to purchase or sell digital currency is solely your decision and we shall not be liable for any loss suffered.

Capital Gains Reporting

For any platform using our BTC-US Node, the following clause will be included in the Terms of Service and should be added to the FAQ page as well.

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The value of any capital gains related to buying and selling cryptocurrency may constitute taxable income. Synapse Financial Technologies will issue an Internal Revenue Service Form 1040 Schedule D (or other appropriate form) to you that reflects the value of the gain, if necessary. Please consult your tax advisor. Synapse and its affiliates and associates do not provide tax advice.

Brokerage Accounts

General Disclosures

When a user creates a brokerage account, they must agree to the Custody Account Agreement with language similar to the following:
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The bank services are provided by Synapse’s partner bank(s), Member(s) FDIC. By opening a trade account on [Platform Name], you agree to the Custody Account Agreement.

“Custody Account Agreement" shall be a hyperlink to the Platform’s custom agreement, provided by Synapse.

The platform should include disclosure language, in a clear and conspicuous manner, similar to the following:

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Investing in securities involves risks, and there is always the potential of losing money. Investments:

Are not FDIC insured, but insured by SIPC
Are not deposits of or guaranteed by a bank
May lose value
Return on investment is not guaranteed”

SIPC Insurance

The platform will not claim to be SIPC insured directly, the accounts are insured through Synapse’s partner bank(s). Security insurance coverage is subject to SIPC rules and limitations.

For all pages including references to transactions or funds held in a user’s brokerage account, include the following in the footer of the webpage and/or application screen:

*“Banking services are provided by Synapse’s partner bank(s).

OCIE Focus

Advisory fees or any other applicable fees must be deducted from advertised performance results.
Platforms must not claim compliance with any voluntary compliance standards (i.e. GIPS) unless they have adhered to all guidelines. This should be verified by a qualified third party.
Cherry-picked stock selections that performed well cannot be used in advertisements. Under the FINRA rule, if you will be using stock performance from a certain time period, you must use all of the results from that time period. This also must be within the last 12 months.

FINRA Rule 2210

Content Standards - General Standards

Platform communication must be based on principles of fair dealing and good faith, must be fair and balanced, and must provide a sound basis for evaluating the facts in regard to any particular security or type of security, industry, or service. No member may omit any material fact or qualification if the omission would cause the communications to be misleading.
No member may make any false, exaggerated, unwarranted, promissory or misleading statement or claim in any communication. No member may publish, circulate or distribute any communication that the member knows or has reason to know contains any untrue statement of a material fact or is otherwise false or misleading.
Information may be placed in a legend or footnote only in the event that such placement would not inhibit an investor's understanding of the communication.
Members must ensure that statements are clear and not misleading within the context in which they are made, and that they provide balanced treatment of risks and potential benefits. Communications must be consistent with the risks of fluctuating prices and the uncertainty of dividends, rates of return and yield inherent to investments.
Members must consider the nature of the audience to which the communication will be directed and must provide details and explanations appropriate to the audience.
Communications may not predict or project performance, imply that past performance will recur or make any exaggerated or unwarranted claim, opinion or forecast; provided, however, that this paragraph (d)(1)(F) does not prohibit:
- A hypothetical illustration of mathematical principles, provided that it does not predict or project the performance of an investment or investment strategy;
- An investment analysis tool, or a written report produced by an investment analysis tool, that meets the requirements of Rule 2214; and
- A price target contained in a research report on debt or equity securities, provided that the price target has a reasonable basis, the report discloses the valuation methods used to determine the price target, and the price target is accompanied by disclosure concerning the risks that may impede achievement of the price target.

Testimonials

If any testimonial in a communication concerns a technical aspect of investing, the person making the testimonial must have the knowledge and experience to form a valid opinion.

Retail communications or correspondence providing any testimonial concerning the investment advice or investment performance of a member or its products must prominently disclose the following:

The fact that the testimonial may not be representative of the experience of other customers.
The fact that the testimonial is no guarantee of future performance or success.
If more than $100 in value is paid for the testimonial, the fact that it is a paid testimonial.

Capital Gains Reporting

For any platform using our Trade-US Node, the following clause will be included in the Terms of Service and should be added to the FAQ page as well.

*“The value of the return you receive may constitute taxable income. Synapse Financial Technologies may issue an Internal Revenue Service Form 1099 (or other appropriate form) to you that reflects the value of the gain. Please consult your tax advisor. Synapse and its affiliates and associates do not provide tax advice.

Lending

Lending services are regulated by the Federal Trade Commission (“FTC"), through the Truth in Lending Act and subsequent regulations set forth by the Federal Reserve Board.

General Disclosures

The platform will adhere to the following verbiage and placement requirements, also detailed in their spec sheet. Additionally, the Platform will not reference Synapse or Synapse’s partner bank(s) in any other way without express written permission from the respective entity.
The Platform will not misrepresent their relationship to Synapse or Synapse’s partner bank(s), nor will they claim a direct relationship with Synapse’s partner bank(s). To explain the association, disclosures will include language similar to:

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The Platform partners with Synapse Credit to offer lending services.

If a user is applying for a loan, they must agree to Synapse’s partner bank’s Loan Agreement, with the following language:

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Lending services are provided by Synapse Credit. By applying for a loan, you agree to the Consumer Loan Agreement.

“Consumer Loan Agreement" shall be a hyperlink to the Platform’s Custom Agreement, this will be provided by Synapse.

TILA Disclosures

The Truth in Lending Act (“TILA") is enforced through Regulation Z, which requires that creditors provide written disclosure of important credit terms, refrain from unfair practices, and respond to borrower complaints regarding errors in billing. Truth in lending disclosures must be provided and agreed to prior to the The required truth in lending disclosure will be included in the Consumer Loan Agreement, provided to the platform.

It is important to note that Platforms can meet all requirements of TILA, but still be at risk of UDAAPs. All relevant terms and conditions must be disclosed as they apply to specific products, even those not specifically required in TIL disclosures. Additionally, violations are possible when the advertised rates were designed to attract consumers who would not qualify for those rates despite sufficient disclosures later on.

TILA requires that borrowers receive written disclosures about important terms of credit before they are legally bound to pay the loan, including:

Annual Percentage Rate (“APR"), the cost of credit expressed as a yearly rate in a percentage
Finance Charge, the total amount of interest and fees, over the life of the loan, if payments are made on time, expressed as a dollar amount
Amount Financed, the dollar amount of credit provided to the borrower
Total of Payments, the sums of all of the payments made at the end of the loan, including repayment of the amount financed and all finance charges*
Number of payments
Monthly payments
Late fees
Penalties for prepayment

*Not all items apply to revolving lines of credit

Regulation Z requires:

Advertisements for specific credit terms must state only the terms that are actually being offered by the creditor
Advertisements including references to:
- The number of payments or period of repayment.
- The amount of any payment.
- The amount of any finance charge

Must also include, as applicable:

The terms of repayment, reflecting the obligations over the full term of the loan
The “Annual Percentage Rate", using that term, and the fact that rate may increase, if applicable.
Disclosures clearly state the amount of interest incurred by the loan in terms of an annual percentage rate
Disclosures list the amount financed and any financing charges associated with issuing and servicing loans
Lenders must provide monthly billing statements to consumers that include any changes in interest rate if the loan has an adjustable rate
Creditors must deliver written notices to consumers about changes to lending terms within a specific time period
If a transaction involves more than one creditor, only one set of disclosures must be given, and the creditors shall agree among themselves which of them will be responsible for complying with Reg Z. Additionally, if multiple consumers are involved, the consumer who is primarily liable must receive the disclosures.

Equal Credit Opportunity Act

Regulation B enforces the Equal Credit Opportunity Act (“ECOA") and prohibits discrimination against an applicant in any aspect of a credit transaction, as well as any statement that would discourage a person from submitting or pursuing an application, based on:

Applicant’s race, marital status, nationality, gender, age, religion
Receipt of income derived from a public assistance program
An applicant who exercised their rights under the Consumer Credit Protection Act, which includes fraud and/or active duty alerts
- Institutions must make a reasonable effort to identify applicants when they obtain consumer reports that show fraud or active duty alerts, as opposed to automatic denial, on that basis.

Creditors may not request or collect information about an applicant’s race, color, religion, nationality, origin, or sex. However, there are exceptions to this rule when the information is necessary to test for compliance with fair lending rules or is required by a government entity for a specific purpose, such as determining eligibility for a particular program. There are additional restrictions and corresponding exceptions regarding the collection of information:

Related to the current or former spouse of the applicant
Regarding alimony, child support, or separate maintenance income
Regarding residency and immigration status

Advertising and marketing should not target or focus on one specific demographic when there is a diverse market area.

Fair Debt Collection Practices Act

Provides guidance and requirements regarding the notice of debts, disputed debts, admissions of liability, legal pleadings and notice provisions.

(https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text#807) The act also:

Limits communication in connection with debt collection based on timing and location, restricts contact:
- At any unusual place or time or which should be known to be inconvenient to the consumer
- If the debt collector has knowledge that the consumer is represented by an attorney with respect to such debt and they can readily ascertain the attorney’s contact information
  - Unless the attorney fails to respond within a reasonable period of time
- At the consumer’s place of employment
- After the consumer has provided written refusal to pay a debt
Prohibits harassment, oppression, and/or abuse in connection to the collection of debt, such as:
- Threatening violence or other criminal means to inflict physical, reputational or proprietary harm
- The use of obscene, profane, or offensive language
- Publishing a list of consumers who allegedly refuse to pay debts
- The advertisement for sale of a debt in an attempt to coerce payment
Prohibits a collector from using any false, deceptive, or misleading representations in relation the collection of debt
Prohibits the use of unfair or unconscionable means to collect debt

Fair Credit Reporting Act

The Fair Credit Reporting Act (“FCRA”) promotes the accuracy, fairness, and privacy of information in the files of credit reporting agencies. Relevant consumer rights under this Act are as follows:

The right to know when information in their credit file has been used against them, resulting in adverse action
- This disclosure of information must include contact information (name, address, phone number) of the agency who provided the information to them.

Periodic Statements

Must comply with Reg Z if not using our statement API and PDF documents.

Repay-US (One-Time Cash Advance)

Our cash advance product is a compliance solution that allows platforms to quickly disburse and service one-time, short-term advances. Platforms are asked to fund their Reserve Amount and allowed to provide cash advances up to that Reserve Amount.

Platforms are only permitted to use the cash advance product if the following conditions are met:

They are offering advances between $100 and $1,000;
They require users to pay back the advance in one lump sum;
They do not charge users a fee per advance; and
They provide users these advances on a non-recourse basis (no collection rights).

Platforms are required to set APR at 0% in order to comply with exemptions to loan regulations. Platforms are permitted to define the payment method, credit limit up to $1,000, a degree of customer decisioning criteria, and other details for advances.

No-recourse cash advances are not subject to state lending statutes because they do not have per-loan fees and they do not incur interest and users' payments are made in full (no installments allowed); payday loans, on the other hand, have per-loan fees and interest. As such, without the fees associated with the provision of an advance without a cost, are not payday loans, and therefore do not constitute a payday (nor any other kind of) loan under state statutes.

These advances are not issued on credit by Synapse’s partner banks. Instead, they are paid in advance by the platform. The platform is disbursing funds from their platform reserve account to the user, so the platform will only be able to offer as many cash advances as the funds in their reserve account will allow. The user will sign a cash advance agreement which lists the platform as the provider of the advance. This agreement will not include any terms on recourse.

The user must receive and expressly agree to Synapse's Cash Advance Agreement. The following language must be used:

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The bank services are provided by Synapse's partner banks, Members FDIC. By accepting the terms of this cash advance on [Platform Name], you agree to [Platform Name]'s Promise to Pay Agreement.

General Disclosures

The platform must clearly disclose all pre-qualifications that users must meet to receive services. It is best practice to display this in an FAQ regarding the product offering.

Remote Deposit Capture (RDC)

Users must agree to the remote deposit capture agreement.

Under Reg CC, the liability for duplicate check losses belongs to the financial institution that accepts the deposit via RDC if a restrictive endorsement was not obtained. To help mitigate risk of loss associated with the duplicated presentment of checks, Platforms must include language, similar to the following as in a pop window or banner prior to accepting images of a check for RDC:

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Please endorse the check ‘For Mobile Deposit Only’ before submission.

Platforms must include a banner/pop up window regarding proper endorsement.