We are an FDIC bank of under 1 billion if we have an ATM card with PIN POS functionality must they be enabled by at least two unaffiliated networks and where in the regulation does it say that? Thanks in advance for any and all responses.

Reg II 235.7(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.

In other words, if your card processor is NYCE, then you need to also have a gateway arraignement at least one other PIN network (STAR, CIRRUS, MAESTRO, PULSE, INTERLINK, etc.)

The REG II exceptions for banks under $10 billion only apply to interchange fees.

Thank you. I was getting hung up on whether or not this qualified as a debit card under Reg II.

You're welcome. A look at 235.2(f) will demonstrate that it does:

Debit card (1) Means any card, or other payment code or device, issued or approved for use through a payment card network to debit an account, regardless of whether authorization is based on signature, personal identification number (PIN), or other means, and regardless of whether the issuer holds the account, and
(2) Includes any general-use prepaid card; and

(3) Does not include—

(i) Any card, or other payment code or device, that is redeemable upon presentation at only a single merchant or an affiliated group of merchants for goods or services; or

(ii) A check, draft, or similar paper instrument, or an electronic representation thereof.