ARLINGTON, VA – FMI – The Food Industry Association today applauds the U.S. Federal Reserve Board of Governors for clarifying that competitive routing is required on all debit transactions – regardless of whether a physical card is used or if the transaction is initiated online.
FMI’s original comments to the Federal Reserve asked for this clarification to ensure that all payment card networks comply with the intent of the law and ensure that multiple payment card networks were enabled on each debit transaction to allow for competition and embrace omnichannel shopping.
FMI President and CEO Leslie G. Sarasin welcomed the news, saying, "FMI applauds the Federal Reserve’s clarification to its debit Regulation II to allow competition regardless of how the debit transaction is initiated. This is a significant win for our industry, for our customers and for competition. Now that the Federal Reserve has ensured that at least two networks must be on a debit card, the same competitive marketplace should be allowed on credit cards. We applaud legislative efforts to require at least two network options on a credit transaction to allow competition, just as we have maintained on debit transactions since 2011."