Reg II Debit Routing (Durbin) for Merchants: What Changed for Online Payments

KEY TAKEAWAYS

• Since July 1, 2023, online debit must support at least two unaffiliated networks—giving you routing choice.
• Ask your provider to enable PINless debit and least‑cost routing; verify checkout indicators and test refunds.
• Track debit network mix and savings while keeping AVS/CVV/3‑D Secure enabled to protect approvals and disputes.

Summary

Since July 2023, debit transactions made online must, like in‑store debit, be enabled to route over at least two unaffiliated networks. This gives merchants real routing choice for web, mobile, and invoice payments and can lower debit acceptance costs when your gateway supports PINless debit and least‑cost routing.

What actually changed

The Federal Reserve clarified that card‑not‑present debit is its own “type” of transaction and must have at least two networks available (for example, Visa Debit plus a regional network). Issuers and networks may not inhibit your ability to choose among the available networks. That means your provider should be able to route online debit over the least‑cost eligible path without breaking your checkout.

How to act on it

Ask your processor which PINless debit networks are turned on for your merchant IDs; confirm your e‑commerce platform passes the right indicators to trigger those networks; then measure your debit network mix and effective rate before and after. Keep an eye on fraud tools (AVS, CVV, 3‑D Secure) so approval rates and dispute performance remain stable.

What this rule didn’t do

It did not change the debit interchange caps by itself; it clarified routing choice for online debit. Savings come from enabling competition at the network level and from your provider’s routing logic.

Who can help

• Leaders Merchant Services review — confirm your gateway supports PINless debit and least‑cost routing online.
• Payment Depot review — interchange‑plus + routing focus; ask for a before/after debit mix analysis.
• Stax review — ensure Card‑Not‑Present routing configuration is on; test with web, hosted payment links, and subscriptions.
• Clover review — if you sell in‑store and online, unify reporting and confirm debit routing settings in both channels.
• Worldpay review — enterprise routing tools and analytics across brands and networks.
• Merchant One and Swipe4Free reviews — ask for CNP debit routing documentation and sample receipts.

Sources

Federal Register final rule (Debit Card Interchange Fees and Routing—CNP clarification; effective July 1, 2023). 

Federal Reserve press release noting the effective date. 

FRB guidance confirming merchant routing choice (no routing restrictions). 

U.S. Payments Forum explainer on the Reg II clarification and implications for PINless debit online.