Currently, retailers have little to no choice in routing card payments for online purchases. This leads to higher costs for retailers as customers increasingly utilize online shopping options. This proposed rule (Regulation II, Docket No. R-1748) would clarify that card networks must enable competitive routing for online purchases – just as they do for in-store transactions.
Online sales have grown significantly in recent years and spiked when retail stores shifted exclusively to online or curbside pickup only early in the pandemic. The Federal Reserve’s proposed rulemaking would bring competition to online debit card transactions and benefit the entire retail industry.
WR expects financial institutions will fervently oppose this rule.
Lend your voice to the National Retail Federation’s (NRF) campaign below to urge the Federal Reserve to adopt federal regulations on payments processing that could save retailers billions of dollars.
