Regulation II has a direct bearing on your transaction costs and net interchange income. Changes may be coming!

posted by Paul Waltz on Wednesday, June 16, 2021 in SHAZAM Blog

I’d like to take just a minute to discuss the Fed’s recent publication regarding changes to Regulation II — one important component is the Durbin Amendment, requiring at least two unaffiliated networks to be available on each debit card issued in the U.S. — and routing of debit transactions, including card-not-present (CNP) transactions. 

Reg II has a direct bearing on your transaction costs and net interchange income.

SHAZAM has long advocated for dual-routing requirements because it keeps the playing field level and fosters an environment where community financial institutions can compete and thrive. 
This acknowledgement by the Fed, a clarification of Reg II requiring at least two unaffiliated networks for all debit transactions, is significant because it recognizes and acknowledges the restrictive practices and challenges in the industry, particularly as online transactions continue to increase in the COVID-19 environment. 

As a nationwide debit network, SHAZAM has offered CNP transaction support for many years so your debit cards are as versatile as possible. 

SHAZAM will offer comments to the Fed, and I encourage you to do the same. Below is a link to the Fed’s document that may help you prepare your own remarks. 

Federal Reserve Board invites public comment on proposed changes to Regulation II regarding network availability for card-not-present debit card transactions and publishes a biennial report containing summary information on debit card transactions in 2019 


  1. federal reserve
  2. network selection

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