PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

How Proposed Regulation II Clarifications Would Impact the Payments Industry:

By PaymentsJournal
July 6, 2021
in Compliance and Regulation, Digital Assets & Crypto, Truth In Data
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Will The Fed Clarify Regulation II to Enforce Utilization of Two Unaffiliated Networks? Mercator Sees it as Likely

How Proposed Regulation II Clarifications Would Impact the Payments Industry:

  • On May 7, 2021 the Federal Reserve Board of Governors issued a Notice of Proposed Rulemaking to amend Regulation II.
  • If enacted, this will require all financial institutions to ensure that card-not-present transactions can be successfully routed over at least two unaffiliated payment networks. 
  • Four categories of entities will see the greatest impact of this potential amendment.
  • Merchants will have routing choice with more cards online and with mobile transactions. 
  • Issuers without PINless capabilities will need to make their cards available for e-commerce transactions. 
  • Mastercard and Visa will see fewer transactions. 
  • EFT Debit Networks will see increased volumes. 

About Viewpoint

On May 7, 2021 the Federal Reserve Board of Governors issued a Notice of Proposed Rulemaking to amend Regulation II which, if enacted, will require all financial institutions to ensure that card-not-present transactions can be successfully routed over at least two unaffiliated payment networks. The implication of this clarification, if enacted, will affect financial institutions, merchants, processors and networks. Community banks and smaller credit unions that currently do not support two networks for e-commerce transactions will see a significant drop in interchange revenue for those e-commerce transactions that are routed through EFT debit networks and not a global network. This announcement also sets the groundwork for future changes to the regulation with far reaching fee implications for the debit card market as a whole.

The proposed change is all about money. What is missing from this announcement is any consideration for cardholders and how they may be impacted by clarifications of the law.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: CNPFederal ReservePayment NetworksPaymentsRegulation IIRegulationsTruth In Data

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Payment Facilitator

    The Payment Facilitator Model as a Growth Strategy for ISVs

    February 4, 2026
    Simplifying Payment Processing? Payment Orchestration Can Help , multi-acquiring merchants

    Multi-Acquiring Is the New Standard—Are Merchants Ready?

    February 3, 2026
    ACH Network, credit-push fraud, ACH payments growth

    What’s Driving the Rapid Growth in ACH Payments

    February 2, 2026
    chatgpt payments

    How Merchants Should Navigate the Rise of Agentic AI

    January 30, 2026
    fraud passkey

    Why the Future of Financial Fraud Prevention Is Passwordless

    January 29, 2026
    payments AI

    When Can Payments Trust AI?

    January 28, 2026
    Contactless Payment Acceptance Multiplies for Merchants: cashless payment, Disputed Transactions and Fraud, Merchant Bill of Rights

    How Merchants Can Tap Into Support from the World’s Largest Payments Ecosystem

    January 27, 2026
    digital banking

    Digital Transformation and the Challenge of Differentiation for FIs

    January 26, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result