Mastercard has allegedly been blocking competing networks from processing certain e-commerce debit card transactions. Banks are required by law to allow at least two unaffiliated networks for every debit card. This is to prevent a monopoly for the network and enables the merchant to choose their preferred network to process payments. According to the order by the Federal Trade Commission (FTC), Mastercard must start providing competing networks with customer account information so they can process debit payments.
The FTC believes Mastercard's current operating procedures violate the 2010 Dodd-Frank Act provisions known as the Durbin Amendment and the implementing rule, Regulation II. This action from the FTC also bans Mastercard from future practices that could inhibit a merchant's choice of competing debit card networks. Mastercard’s previous company policy effectively blocked merchants from using other networks when processing Mastercard-branded debit cards. These debit cards were saved in e-wallets used on alternative payment networks.
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