Overview
Senator Richard Durbin (D-IL) of Durbin Amendment fame has asked the Federal Reserve Board of Governors to determine if financial institutions that have not adopted PINless debit are inhibiting merchants’ choice of debit networks, particularly for e-commerce transactions, and thus violating Regulation II.
A change or clarification to Regulation II that requires financial institutions issue cards with PINless capabilities through the EFT debit networks could help some merchants to lower their e-commerce processing costs, but they will need to change their routing routines and be aware that these PINless transactions come with chargebacks. The real winners in this scenario are the EFT debit networks themselves.
Book a Meeting with the Author
Related content
State of Debit 2026
Despite headwinds that include significant financial strain on consumers despite a broadly stable economy, debit remains resilient—especially among younger consumers and lower inco...
The Target Circle Card Program: If at First You Don’t Succeed, Try Again
Target Circle Card program is a standout loyalty program for offering credit and debit card products. However, the program is under pressure, and there are lessons to be learned. F...
2026 Debit Payments Trends
For decades, the checking account has served as the foundation on which all consumer and business payments have rested. But that stability is now beginning to give way to the seemi...
Make informed decisions in a digital financial world