Current Important Topics
Regulation II – Debit Card Processing
Description: The Federal Reserve Board (FRB) has published proposed change to Regulation II (Debit Card Interchange Fees and Routing) to clarify the coverage of “card not present” (CNP) transactions.
Specifically, the proposal would clarify that debt card issuers should enable, and merchants should be able to choose from at least two unaffiliated networks for CPN transactions.
Permitted Arrangements (235.7(a)(2))
Proposed Rule – would provide that two unaffiliated payment card networks must be enabled to process an EDT for every (1) geographic area, (2) specific merchant, (3) particular type of merchant, and (4) particular type of transaction for which the issuer’s debit card can be used to process an EDT.
Reference: Federal Register; May 13, 2021:pp. 26189 – 26195
Regulatory Emerging Issues
IRA Act / Introduced in the Senate by John Kennedy 06/07/21
- Increasing Retirement Account Act
- Would increase the IRA contribution limit to $12,000 per year for individuals who do not have access to a workplace retirement plan.
- Would increase the IRA contribution limit to $13,000 per year for individuals who are at least 40 years old and who do not have access to a workplace retirement plan.
Keeping Your Retirement Act S. 1959 / Introduced in the Senate by John Kennedy
- Would raise the required minimum distributions age from 72 to 75 for certain retirement accounts.