FOR IMMEDIATE RELEASE
October 4, 2022
The Federal Reserve issued a statement finalizing updates to the Board’s Regulation II rule concerning debit card transactions, stating debit card issuers must authorize “at least two payment card networks.” CUNA, Leagues and credit unions strongly oppose this rule.
“This final rule not only adds layers of unnecessary complexity to debit card networks, it will likely accelerate the decline in debit card revenue while increasing compliance costs,” said CUNA President/CEO Jim Nussle. “This rule has very little consumer benefits, while making it much harder for community financial institutions to offer safe, affordable card programs.”
Under the final rule, an issuer must configure each of its debit cards so that card-not-present transactions performed with those cards can be processed on at least two unaffiliated networks.
The rule becomes effective July 1, 2023.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.