NAFCU's Berger Says Reg II Final Rule "Fails" Consumers

Dan Berger

The Federal Reserve yesterday issued a final rule on Regulation II, which covers debit card interchange fees and network routing exclusivity – requiring all debit card issuers to enable and allow merchants to choose from at least two unaffiliated networks for card-not-present (CNP) transactions, such as online purchases. 

NAFCU President and CEO Dan Berger issued the following statement in response to the final rule:

“The Fed’s final rule on Regulation II fails smaller financial institutions, the credit union industry at-large and ultimately consumers. The Fed’s rule mandating debit card issuers to enable at least two payment networks for debit transactions will force small issuers to allow transactions over riskier networks, increasing fraud costs for our nation’s community financial institutions. NAFCU and its member credit unions have seen little good come out of Reg II or the Dodd-Frank Act for that matter – including the failed Durbin Amendment. Imposing this final rule would increase implementation and fraud costs for smaller financial institutions, on top of everything else they’re battling with inflation, all for the benefit of big box stores and big online retailers such as Amazon. NAFCU and our members will continue to engage the Fed and Congress to underscore the negative impacts of this rule.”

​– NAFCU President and CEO Dan Berger 

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