image credit: Pexels

Retail groups urge credit swipe routing changes

October 19, 2021

Over 10 years after Congress brought competition to how in-store debit card transactions are processed, the Federal Reserve is finally seeking to clarify that the same rules apply to online debit transactions as well.

The move has been strongly backed by the two top government agencies in charge of fairness in open markets: The Department of Justice says competition over where online debit transactions are routed for processing “could have a very significant impact on the U.S. economy as a whole.” And the Federal Trade Commission says action is needed because card networks’ and big banks’ efforts to block online routing competition “eviscerate” merchants’ legal right under federal law to choose who processes the transactions.

Read More on Payments Dive