Fed finalizes updates to Regulation II debit requirements

WASHINGTON, DC (October 4, 2022) — The Federal Reserve issued a statement finalizing updates to the Board’s Regulation II rule concerning debit card transactions, stating debit card issuers must authorize “at least two payment card networks.” CUNA, Leagues and credit unions strongly oppose this rule.

“This final rule not only adds layers of unnecessary complexity to debit card networks, it will likely accelerate the decline in debit card revenue while increasing compliance costs,” said CUNA President/CEO Jim Nussle. “This rule has very little consumer benefits, while making it much harder for community financial institutions to offer safe, affordable card programs.”

Under the final rule, an issuer must configure each of its debit cards so that card-not-present transactions performed with those cards can be processed on at least two unaffiliated networks.

Specifically, it:

  • Specifies that the requirement that each debit card transaction must be able to be processed on at least two unaffiliated payment card networks applies to card-not-present transactions.
  • Clarifies the requirement that debit card issuers ensure that at least two unaffiliated networks have been enabled to process a debit card transaction.
  • Adopts most of the proposed revisions to standardize and clarify the use of certain terminology (e.g., using the term “perform,” rather than “process” or “initiate”) to maintain consistency throughout Regulation II.

The rule becomes effective July 1, 2023.

About Credit Union National Association (CUNA)

Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit To find your nearest credit union, visit


CUNA Communications

More News