Breaking News: Fed Says Routing Provisions Apply to Card Not Present
Today, the Federal Reserve (The Fed) has made an announcement in regards to "Regulation II" - which enforces the Durbin Amendment - and states that; "debit card issuers should enable, and allow merchants to choose from, at least two unaffiliated networks for card-not-present debit card transactions, such as online purchases."
The Fed now invites public comment on the proposed changes.
This position was established as part of a larger biennial release on average debit card volumes, fees, fraud and underlying costs – which are tracked by The Fed to ensure that the Debit Interchange caps implemented by the Durbin Amendment remain proportional to the costs of issuers.
Click here to read the full release.