(a) Prohibition on network exclusivity.
(1) In general. An issuer or payment card network shall not directly or through
any agent, processor, or licensed member of a payment card network,
by contract, requirement, condition, penalty, or otherwise, restrict
the number of payment card networks on which an electronic debit transaction
may be processed to less than two unaffiliated networks.
(2) Permitted arrangements. An issuer satisfies the requirements
of paragraph (a)(1) of this section only if the issuer enables at
least two unaffiliated payment card networks to process an electronic
debit transaction—
(i) where such networks in combination do not, by their respective
rules or policies or by contract with or other restriction imposed
by the issuer, result in the operation of only one network or only
multiple affiliated networks for a geographic area, specific merchant,
particular type of merchant, or particular type of transaction, and
(ii) where each of these networks
has taken steps reasonably designed to be able to process the electronic
debit transactions that it would reasonably expect will be routed
to it, based on expected transaction volume.
(3) Prohibited exclusivity arrangements by networks. For purposes of paragraph (a)(1) of this section, a payment card
network may not restrict or otherwise limit an issuer’s ability to
contract with any other payment card network that may process an electronic
debit transaction involving the issuer’s debit cards.
(4) Subsequent affiliation. If unaffiliated payment card networks
become affiliated as a result of a merger or acquisition such that
an issuer is no longer in compliance with paragraph (a) of this section,
the issuer must add an unaffiliated payment card network through which
electronic debit transactions on the relevant debit card may be processed
no later than six months after the date on which the previously unaffiliated
payment card networks consummate the affiliation.
(b) Prohibition on routing restrictions. An issuer or payment card network shall not, directly or through
any agent, processor, or licensed member of the network, by contract,
requirement, condition, penalty, or otherwise, inhibit the ability
of any person that accepts or honors debit cards for payments to direct
the routing of electronic debit transactions for processing over any
payment card network that may process such transactions.
(c) Compliance dates.
(1) General. Except as otherwise provided in paragraphs (c)(2), (c)(3), and (c)(4)
of this section, the compliance date of paragraph (a) of this section
is April 1, 2012.
(2) Restrictions by payment card networks. The
compliance date of paragraphs (a)(1) and (a)(3) of this section for
payment card networks is October 1, 2011.
(3) Debit cards
that use transaction qualification or substantiation systems. Issuers shall comply with the requirements of paragraph (a) of this
section by April 1, 2013, for electronic debit transactions using
debit cards that use point-of-sale transaction qualification or substantiation
systems for verifying the eligibility of purchased goods or services.
(4) General-use prepaid cards. Issuers shall comply
with the requirements of paragraph (a) of this section with respect
to general-use prepaid cards as set out below.
(i) With
respect to non-reloadable general-use prepaid cards, the compliance
date is April 1, 2013. Non-reloadable general-use prepaid cards sold
prior to April 1, 2013 are not subject to paragraph (a) of this section.
(ii) With respect to
reloadable general-use prepaid cards, the compliance date is April
1, 2013. Reloadable general-use prepaid cards sold prior to April
1, 2013 are not subject to paragraph (a) of this section unless and
until they are reloaded, in which case the following compliance dates
apply:
(A) With respect to reloadable general-use
prepaid cards sold and reloaded prior to April 1, 2013, the compliance
date is May 1, 2013.
(B)
With respect to reloadable general-use prepaid cards sold prior to
April 1, 2013, and reloaded on or after April 1, 2013, the compliance
date is 30 days after the date of reloading.
