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Breaking News: Fed Announcement Could Open Online Routing for U.S. Merchants

The Federal Reserve Board on Monday finalized updates to the Board's rule concerning debit card transactions.


The clarification to the Durbin Amendment states: "that debit card issuers should enable at least two payment card networks to process all debit card transactions, including "card-not-present" transactions, such as online payments." Effective July 1st, 2023, all debit transactions should be enabled for routing by merchants in the U.S.

CMSPI estimates that merchants save $1 billion every year due to debit routing competition in-store - a figure that could increase by $3 billion as the industry fully adopts debit routing competition for digital payments. If that same competition were extended to credit cards, CMSPI estimates an additional $11 billion+ in annual savings for merchants.

Prashani Samaraweera

Alex Ellwood

SVP, Marketing & Insights

“CMSPI welcomes the U.S. Federal Reserve announcement clarifying that debit routing competition, which has been existing law for over a decade, applies to all online and digital transactions.”