Regulation E (REG E)

Previously, the law stipulated that a merchant could not accept a debit card from a consumer for recurring charges without express written authorization for that charge. Years ago, this was a non-issue, due to the fact that neither the retailer nor the customer could detect the difference between a traditional credit and debit card. However, now Visa, MasterCard and other major credit card companies have begun to reissue debit cards with identifiable debit card logos. This is an extremely important development because now the retailer must adjust his or her processes and procedures accordingly for debit card transactions in recurring billing situations.

ERA succeed in talks with the Federal Reserve Board to outline a viable solution that is fair to both retailers and consumers. The Federal Reserve Board has determined that taping of telephonic transactions will be acceptable. This is a very significant development for the benefit of marketers, and ERA continues to work to ensure that this compromise will meet required levels of compliance.

Read the full article on the final rule.