Private sector payment organizations should continue to play the primary role in establishing rights and responsibilities for payment transactions between their participating financial institutions, provided that their rules are consistent with customer protections established by federal and state governmental authorities for the customer-financial institution relationship. Current payments law structure, relying on a combination of private sector rules, baseline statutory consumer protections, and (in the case of check payments) a somewhat variable uniform check collection statute, has shown remarkable flexibility in facilitating and responding to the unprecedented scope and pace of change that has occurred in the retail payments world over the last twenty years. The financial services industry should continue to support these two separate spheres of payment laws, private sector rules and government-mandated baseline consumer protection rules. The payment system stakeholders should not attempt to further regulate or limit, either by legislation or by regulation, the ability of private sector payment organizations to establish rules governing the relationships between their participating financial institutions.

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