Federal Reserve's Debit Card Ruling Spurs Action to Help Banks Prepare
New Ruling Requires Issuers to Now Offer Network Choice for Both In-Person and Online Transactions
According to Digital Transactions, debit card networks are now gearing up for an expected flood of new online transactions in the wake of the Federal Reserve rule clarification that took effect July 1. The ruling requires that issuers enable network choice for merchants on all in-person as well as online debit transactions. Choice was previously limited, as many issuers were concerned about the higher fraud liability with card-not-present transactions.
But networks are now taking steps to help banks meet these new requirements while minimizing risk. For example, Pulse Network, a Discover Company, just last week extended a partnership to leverage FICO’s fraud-analytics technology to support e-commerce transactions in addition to those occurring at store counters. The technology supports Pulse’s DebitProtect anti-fraud offerings, which helps in preventing and responding to the latest debit fraud trends.
Read this and more in the latest edition of SFE's News & Knowledge Bulletin.