FRB Extends Comment Period on Proposed Regulation II Changes


The Federal Reserve Board is extending the comment due date for their proposed changes to Regulation II regarding card-not-present debit card transactions having two unaffiliated payment card networks. The new comment due date is Aug. 11.

As a reminder, here is a summary of the changes:

The Federal Reserve Board released proposed revisions to Regulation II to clarify that card-not-present debit card transactions must have two unaffiliated payment card networks available. The changes are related to the growth in online commerce which increased the volume of card-not-present debit card transactions.

Most of the clarification comes from changes to 235.7 and its associated commentary which prohibits network exclusivity and routing restrictions.

The new wording reads, “(2) Permitted arrangements. An issuer satisfies the requirements of paragraph (a)(1) of this section only if, for every geographic area, specific merchant, particular type of merchant, and particular type of transaction for which the issuer’s debit card can be used to process an electronic debit transaction, such issuer enables at least two unaffiliated payment card networks to process an electronic debit transaction, and where each of these networks has taken steps reasonably designed to be able to process the electronic debit transactions that it would reasonably expect will be routed to it, based on expected transaction volume.”

Question of the Week

Q. Is a will naming someone as the executor of the estate enough justification to allow access to a deceased member’s account?

A. No. To access the deceased member’s account, the person claiming to be the executor of the estate needs to provide your credit union with a copy of the member’s death certificate and Letters Testamentary.

Letters Testamentary is a court-issued document that proves that the person named is the executor of the estate in question. It is the probate court’s job to look at the will, determine if it is valid and current, and issue the letters to the appropriate person. It is only after your credit union has received the Letters Testamentary that it should provide access to the deceased member’s accounts. Letters Testamentary are sometimes called Letters of Administration.

Related Links

RCW 11.20.020
RCW 11.11.100
ORS 113.035
ORS 113.125
IDS 15-3-103
IDS 15-3-102

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Questions? Contact the Compliance Hotline: 1.800.546.4465;

Posted in Compliance News, Compliance Question.