Reminder: Exclusivity and Routing Rules Effective April 1

As required by the Dodd-Frank Act and the Federal Reserve’s Regulation II, debit cards now must have at least two unaffiliated networks. The network exclusivity and routing requirements came into effect on April 1.

Regulation II implements the provisions of section 920 of the Electronic Funds Transfer Act that govern debit card interchange fees and network routing and exclusivity limitations. The regulation requires a debit card issuer or payment card network to ensure that debit cards can be processed on at least two unaffiliated networks. These can be one signature and one PIN network, two signature networks or two PIN networks.

Regulation II also prohibits issuers and payment card networks from limiting a merchant’s ability to choose the network on which a transaction is routed, with respect to those networks on which the debit card is enabled to be used.

The requirements apply to all debit card issuers, regardless of asset size.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News.