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Regulation II (Debit Card Interchange Fees and Routing)

Reports and Data Collections

Reports

Interchange Fee Revenue, Covered Issuer Cost, and Covered Issuer and Merchant Fraud Loss Related to Debit Card Transactions

Background: The Electronic Fund Transfer Act requires the Federal Reserve Board (Board) to biennially publish data on costs incurred, and interchange fees charged or received, by debit card issuers and payment card networks. The Board conducted the first Payment Card Network and Debit Card Issuer surveys in 2010, collecting data for calendar year 2009. The information from the first data collection assisted the Board in developing Regulation II, and was included in a report published in June 2011.

Data tables: revised as of April 6, 2021:

Impact of Regulation II on Small Debit Card Issuers

Background: The Dodd-Frank Act exempts small debit card issuers from the interchange fee standard set in Regulation II, but not from the statute's prohibition on network exclusivity (a small debit card issuer is an issuer that, together with its affiliates, has assets of less than $10 billion). In conjunction with the issuance of the final rule for Regulation II in June 2011, the Board assessed the impact of certain provisions of the regulation on small debit card issuers. The findings were included in a report published in May 2013.

Data Collections

Payment Card Network Survey

Background: Regulation II requires payment card networks to file reports with the Board. This survey serves as this report. This survey solicits information regarding (1) volumes and values of debit card transactions (including general-purpose prepaid card transactions) processed by the network; (2) interchange fees paid by acquirers and received by issuers; (3) network fees paid by acquirers and issuers; and (4) incentives paid to acquirers, merchants, and issuers. For purposes of this survey, three-party systems are not included.

Survey Instrument:

Debit Card Issuer Survey

Background: Regulation II requires that issuers covered by the interchange fee standards in Regulation II file reports with the Board. This survey serves as this report. The survey solicits information regarding (1) volumes and values of debit card transactions; (2) volumes and values of chargebacks and returns to merchants; (3) the costs incurred in connection with the authorization, clearance, and settlement of debit card transactions; (4) other costs incurred in connection with particular debit card transactions; (5) costs incurred by debit card issuers to prevent fraud in debit card transactions; (6) interchange fees charged or received by debit card issuers in connection with debit card transactions; and (7) the incidence and loss associated with fraudulent debit card transactions.

Survey Instrument:

Federal Reserve Board Survey of Small Debit Card Issuers

Background: In order to assess the impact of Regulation II on small debit card issuers, in 2012 the Federal Reserve Board conducted a one-off voluntary survey of such issuers. The survey solicited information regarding (1) the extent to which institutions needed to enable an additional network on their debit cards (excluding prepaid cards) to comply with the regulation; (2) the costs of such adjustments; and (3) potential rejection or other discrimination customers of small issuers faced with respect to the use of their debit cards at the point of sale because their cards were provided by issuers exempt from the interchange fee standard.

Survey Instrument:

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Last Update: September 23, 2022