Form FR 3062 FR 3062 Payment Card Network Survey

Payment Card Network Survey

FR 3062
OMB. No. 7100-[NEW]
Approval Expires Feb. 2011

This report is required by law [Pub. L. 111-203, § 1075, 124 Stat. 1376 (2010)].
The Federal Reserve System regards the individual organization information provided by each respondent as confidential (5 U.S.C. § 552(b)(4)). If it should
be determined subsequently that any information collected on this form must be released, the respondents will be notified. The Federal Reserve may not
conduct or sponsor, and an organization (or a person) is not required to respond to, a collection of information unless it displays a currently valid OMB
control number.

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Response form
Networks covered in this survey response

Unique identifier (provided in cover letter to survey)
Primary contact for this survey response
Name:
E-mail:
Phone:

Public reporting burden for this collection of information is estimated to be 150 hours per response, including the time to gather data in the required form
and to review instructions and complete the information collection. Send comments regarding this burden estimate or any other aspect of this collection of
information, including suggestions for reducing the burden to: Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N.W.,
Washington, D.C. 20551, or via email to [email protected]; and to the Office of Management and Budget, Paperwork Reduction Project (7100-0079),
Washington, D.C. 20503.
Please refer to the instructions that accompanied this survey. Do not leave any cells in the survey blank. If a response to a particular cell does not exist,
enter a 0. If a response to a particular cell cannot be determined, enter DK for “don’t know.” If you have other questions or difficulties, Board staff can
assist you. Please call Jennifer Davidson at 202-452-2446 or email [email protected] for assistance. Provide your name, organization, and
contact information along with your inquiry when you call or email.

Page 1 of 25

Section I. Payment Card Network Information

Payment Card Network Survey
Signature debit
(1)
Number
Value

PIN debit
(2)
Number
Value

A. Purchases and returns
1. Total transactions
a. Transactions that included cash back
b. Cash-back amount
B. Transaction environment
1. Card-present
2. Card-not-present
C. Transaction type
1. Purchase
2. Return
D. Transaction location
1. Domestic
2. International
E. Merchant acceptance
1. Number of merchants
2. Number of merchant locations
F. Card issuance
1. Number of card issuers
2. Number of cards
G. Network coverage
1. Domestic regions covered

2. International regions covered

FR 3062
Prepaid
(3)
Number
Value

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Please provide any explanatory comments regarding your response above, if needed.

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Section II. 2009 Fees

Payment Card Network Survey
FR 3062

II.A. Interchange fees paid to issuers and charged to acquirers
Use environment

Fee

Fee program name
(1)
Example Restaurant Debit
Signature Debit
1
2
3
4
Add additional programs as needed
Total signature debit
PIN Debit
1
2
3
4
Add additional programs as needed
Total PIN debit
Prepaid
1
2
3
4
Add additional programs as needed
Total prepaid

Fee program description and
qualification criteria
(2)
Applies to all restaurants

Cardpresent
(3)
x

Card-notpresent
(4)

Effective dates

Start date
(5)
1/1/2009

End Date
(6)
4/30/2009

Interchange fee

Dollar per
transaction
($)
(7)
0.10

Percentage of
Dollar
transaction minimum on Dollar cap
fee
on fee
value
(%)
($)
($)
(8)
(9)
(10)
1.19
n.a.
n.a.

Number of
transactions
(11)
10,000,000

Total value of
transactions
($)
(12)
500,000,000

Total fees
provided to
issuers
($)
(13)
10,500,000

Explanatory Comments
(14)

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II.B. Network fees charged to issuers that are assessed on a per-transaction basis
Effective dates

Fee

Fee type
(1)

Example Switch fee
Signature Debit
1
2
3
4
Add additional programs as needed
Total signature debit
PIN Debit
1
2
3
4
Add additional programs as needed
Total PIN debit
Prepaid
1
2
3
4
Add additional programs as needed
Total prepaid

Fee description
(2)
Fee to process transactions

Start date
(3)
1/1/2009

End Date
(4)
12/31/2009

Fee

Dollar per
transaction
($)
(5)
0.03

Percentage of
transaction
value
(%)
(6)
n.a.

Other (describe
calculation method)
(7)
n.a.

Number of
transactions
(8)
1,000,000,000

Total value of
transactions
($)
(9)
150,000,000,000

Total
transaction fees
charged to
issuers
($)
(10)
30,000,000

Explanatory Comments
(11)

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II.C. Network fees charged to issuers that are not assessed on a per-transaction basis
Effective dates

Fee

Fee type
(1)

Example Licensing assessment
Signature Debit
1
2
3
4
Add additional programs as needed
Total signature debit
PIN Debit
1
2
3
4
Add additional programs as needed
Total PIN debit
Prepaid
1
2
3
4
Add additional programs as needed
Total prepaid

Fee description
(2)

Optional
(3)

Start date
(4)

End Date
(5)

Fee
(6)

Fee calculation volume, if applicable
(7)

$x per month for up to A cards outstanding; $y per
month for between A and B cards outstanding; $z per
month for more than B cards outstanding

n.a.

Total nontransaction fees
charged to
issuers
($)
(8)

Explanatory Comments
(9)

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Tiered monthly participation fee

No

1/1/2009

12/31/2009

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50,000,000

II.D. Other program fees paid to issuers, or discounts in fees paid by issuers (e.g., incentive programs, etc.) (excluding interchange fees reported in section II.A)
Effective dates

Fee

Fee or discount type
(1)

Example Volume incentives
Signature Debit
1
2
3
4
Add additional programs as needed
Total signature debit
PIN Debit
1
2
3
4
Add additional programs as needed
Total PIN debit
Prepaid
1
2
3
4
Add additional programs as needed
Total prepaid

Fee or discount description
(2)
Payment to issuers for volumes exceeding certain
threshholds

Start date
(3)

End Date
(4)

Fee or discount
(5)

Number of
issuers in
program
(6)

1/1/2009

12/31/2009

x% discount on fees for volume over y
million

1

Fee or discount calculation volume, if
applicable
(7)

n.a.

Total fees paid
or discounted
to issuers
($)
(8)

Explanatory Comments
(9)

300,000

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II.E. Network fees charged to acquirers or merchants that are assessed on a per-transaction basis (excluding interchange fees reported in section II.A)
Effective dates

Fee

Fee type
(1)

Example Switch fee
Signature Debit
1
2
3
4
Add additional programs as needed
Total signature debit
PIN Debit
1
2
3
4
Add additional programs as needed
Total PIN debit
Prepaid
1
2
3
4
Add additional programs as needed
Total prepaid

Fee description
(2)
Fee to process transactions

Start date
(3)
1/1/2009

End Date
(4)
12/31/2009

Fee

Dollar per
transaction
($)
(5)
0.03

Percentage of
transaction
value
(%)
(6)
n.a.

Other (describe
calculation method)
(7)
n.a.

Number of
transactions
(8)
1,000,000,000

Total value of
transactions
($)
(9)
150,000,000,000

Total fees
charged to
acquirers or
merchants
($)
(10)
30,000,000

Explanatory Comments
(11)

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II.F. Network fees charged to acquirers or merchants that are not assessed on a per-transaction basis
Effective dates

Fee

Fee type
(1)

Example Licensing assessment
Signature Debit
1
2
3
4
Add additional programs as needed
Total signature debit
PIN Debit
1
2
3
4
Add additional programs as needed
Total PIN debit
Prepaid
1
2
3
4
Add additional programs as needed
Total prepaid

Fee description
(2)

Optional
(3)

Start date
(4)

End Date
(5)

Fee
(6)

Fee calculation volume, if applicable
(7)

$x per month for up to A cards outstanding; $y per
month for between A and B cards outstanding; $z per
month for more than B cards outstanding

n.a.

Total fees
charged to
acquirers or
merchants
($)
(8)

Explanatory Comments
(9)

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Tiered monthly participation fee

No

1/1/2009

12/31/2009

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50,000,000

II.G. Other program fees paid to acquirers or merchants by or discounts in fees paid by acquirers or merchants (e.g., incentive programs, etc.)
Effective dates

Fee

Fee or discount type
(1)

Example Volume incentives
Signature Debit
1
2
3
4
Add additional programs as needed
Total signature debit
PIN Debit
1
2
3
4
Add additional programs as needed
Total PIN debit
Prepaid
1
2
3
4
Add additional programs as needed
Total prepaid

Fee or discount description
(2)
Payment to issuers for volumes exceeding certain
threshholds

Start date
(3)

End Date
(4)

Fee or discount
(5)

Number of
acquirers or
merchants in
program
(6)

1/1/2009

12/31/2009

x% discount on fees for volume over y
million

1

Fee or discount calculation volume, if
applicable
(7)

n.a.

Total fees paid
or discounted
to acquirers or
merchants
($)
(8)

Explanatory Comments
(9)

300,000

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Section III. Historical Interchange Fees

Payment Card Network Survey
FR 3062

Year
Signature Debit
1990
1995
2000
2005
2009
PIN Debit
1990
1995
2000
2005
2009
Prepaid
1990
1995
2000
2005
2009

Total interchange
fees reimbursed to
issuers
(1)

Total number of
transactions
(2)

Total value of
transactions
(3)

Average
interchange fee as
a percentage of
total transaction
value
(4)

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Please provide any explanations as to changes or trends in interchange rates from 1990 to 2009.

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Section IV. Fraud Prevention and Data Security Costs

Payment Card Network Survey
FR 3062

IV.A. Fraud prevention costs

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total

Type of fraud prevention activity
(1)
Specialized authorization services
Transaction verification
Cardholder transaction monitoring
Merchant transaction monitoring
Development/assessment of merchants' security programs
Data compromise response

PIN debit
($)
(2)

Fully allocated costs
Signature debit
($)
(3)

Prepaid
($)
(4)

Cost allocation methodology for joint costs if not
based on the number of transactions (include
percentage of fully allocated costs that are joint)
(5)

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Please provide any explanatory comments in the space below.

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IV.B. Data security costs

Type of data security activity
(1)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total

PIN debit
($)
(2)

Fully allocated costs
Signature debit
($)
(3)

Prepaid
($)
(4)

Cost allocation methodology for joint costs if not
based on the number of transactions (include
percentage of fully allocated costs that are joint)
(5)

Data access controls
Data processing security
Communications security
PCI compliance

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Please provide any explanatory comments in the space below.

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Section V. Fraud Losses

Payment Card Network Survey
FR 3062

V.A. Signature debit fraud losses

Number of fraudulent transactions

Type of fraud
(1)

Gross
(2)

Net after
representments
(3)

Value of fraudulent transactions

Gross
($)
(4)

Net after
representments
($)
(5)

Percentage of net fraud loss value after
representments
Issuers and
cardholders
(%)
(6)

Network
(%)
(7)

Acquirers and
merchants
(%)
(8)

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1
Lost or stolen
2
Counterfeit
3
Mail order, telephone order, Internet order
4
Account takeover
5
Family fraud
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total signature debit

Please provide any explanatory comments in the space below.

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V.B. PIN debit fraud losses

Number of fraudulent transactions

Type of fraud

Gross
(2)

(1)

Net after
representments
(3)

Value of fraudulent transactions

Gross
($)
(4)

Net after
representments
($)
(5)

1
Lost or stolen
2
Counterfeit
3
Mail order, telephone order, Internet order
4
Account takeover
5
Family fraud
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total PIN debit

Percentage of net fraud loss value after
representments
Issuers and
cardholders
(%)
(6)

Network
(%)
(7)

Acquirers and
merchants
(%)
(8)

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V.C. Prepaid fraud losses

Number of fraudulent transactions

Type of fraud

Gross
(2)

(1)

Net after
representments
(3)

Value of fraudulent transactions

Gross
($)
(4)

Net after
representments
($)
(5)

1
Lost or stolen
2
Counterfeit
3
Mail order, telephone order, Internet order
4
Account takeover
5
Family fraud
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total prepaid

Percentage of net fraud loss value after
representments
Issuers and
cardholders
(%)
(6)

Network
(%)
(7)

Acquirers and
merchants
(%)
(8)

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Section VI. Fraud Occurrence and Mitigation

Payment Card Network Survey
FR 3062

VI.A.) Is the level or incidence of fraud influenced by whether the authorization of an electronic debit transaction occurs in a cardpresent or card-not-present environment?

YES

NO

If the answer to the above question is "Yes," please briefly explain in the space provided below.

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VI.B.) Is the level or incidence of fraud in a card-present environment influenced by whether the authorization of an electronic debit
transaction is based on a PIN or a signature?
If the answer to the above question is "Yes," please briefly explain in the space provided below.

Page 16 of 25

YES

NO

VI.C.) Is the level or incidence of fraud in a card-present environment influenced by whether an electronic debit transaction occurs face
to-face or unattended?

YES

NO

If the answer to the above question is "Yes," please briefly explain in the space provided below.

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VI.D.) Have existing interchange fees influenced incentives for each party involved in electronic debit transactions to reduce fraud on
such transactions?
Please briefly explain why or why not in the space provided below.

Page 17 of 25

YES

NO

VI.E.) Are there any industry-wide estimates available of fraud prevention and data security costs expended by each party involved in
electronic debit transactions?

YES

NO

If the answer to the above question is "Yes," please briefly explain in the space provided below.

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VI.F.) In addition to the network estimates provided in response to section V are there any industry-wide estimates available of fraud
losses absorbed by each party involved in electronic debit transactions?
If the answer to the above question is "Yes," please briefly explain in the space provided below.

Page 18 of 25

YES

NO

VI.G.) Are there any industry accepted or network required fraud prevention standards with which issuers and merchants must adhere?

YES

NO

If the answer to the above question is "Yes," please briefly explain in the space provided below.

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VI.H.) In the space provided below, briefly describe any available, economical means by which fraud on electronic debit transactions can
currently be reduced by each party in such transactions. Also, please describe additional future means that may be available to prevent fraud.

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Section VII. Exclusivity Arrangements and Routing Procedures

Payment Card Network Survey
FR 3062

VII.A.) Does your organization currently have any rules, guidelines, policies, interpretations, or otherwise with regard to an
issuer's ability to issue debit cards (whether signature or PIN-based) or prepaid cards that:

YES

NO

1. Require debit cards or prepaid cards issued on your payment card network to be exclusively processed on your payment
card network (or an affiliated payment card network)?
2. Limit or otherwise restrict an issuer's ability to issue debit cards or prepaid cards that can be processed on an unaffiliated
payment card network?

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If the answer to either of the above questions is "Yes," briefly describe the nature of such restrictions in the space below:

YES

3. Over the past 10 years, has your organization changed any of its rules, guidelines, policies, interpretations or otherwise
with respect to 1. or 2. above?
If "Yes," briefly describe the nature of and reasons for such changes in the space below:

Page 20 of 25

NO

VII.B.) Does your organization currently enter into contracts with individual issuers in your payment card network under which
the issuer agrees:

YES

NO

1. That any debit cards (whether signature or PIN-based) or prepaid cards issued on the payment card network are
exclusively processed on that payment card network (or an affiliated payment card network)?
2. Not to issue any debit cards (whether signature or PIN-based) or prepaid cards that can be processed on an unaffiliated
payment card network?
3. To commit to or guarantee a certain volume or dollar threshold of transactions that will be processed on that payment card
network (or an affiliated payment network)?

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If "Yes," briefly describe the nature of such contracts in the space below:

YES

4. Over the past 10 years, has your organization entered any contracts with issuers in your payment card network with
respect to 1., 2., or 3. above?
If "Yes," briefly describe the nature of such contracts in the space below:

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NO

VII.C.) With respect to individual issuers in your payment card network, does your organization provide incentives based on
whether the issuer agrees:

YES

NO

1. That any debit cards (whether signature or PIN-based) or prepaid cards issued on your payment card network are
exclusively processed on your payment card network (or an affiliated payment card network)?
2. Not to issue any debit cards (whether signature or PIN-based) or prepaid cards that can be processed on an unaffiliated
payment card network?
3. To commit to or guarantee a certain volume or dollar threshold of transactions that will be processed on your payment
card network (or an affiliated payment network)?

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If "Yes," mark all incentives your organization provides:
a. Higher interchange fees
b. Lower network fees

c. More favorable terms (briefly describe in the space below)
d. Other (briefly describe in the space below)

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VII.D.) Does your organization currently have any rules, guidelines, policies, interpretations, or otherwise (including volume or
dollar threshold requirements) that direct or set priorities regarding how a person that accepts debit cards (or their merchant
acquirer or processor) or prepaid cards must route an electronic debit transaction when multiple payment card networks, including
your own, are available to process that particular transaction?

YES

NO

If "Yes," briefly describe the nature of such restrictions in the space below:

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YES

Over the past 10 years, has your organization changed any of its rules, guidelines, policies, interpretations or otherwise with
respect to the question above?
If "Yes," briefly describe the nature of and reasons for such changes in the space below:

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NO

VII.E.) Does your organization currently enter into contracts with merchant acquirers or processors that direct the merchant
acquirer or processor to route a transaction over your payment card network when multiple payment card networks, including
your own, are available to process that transaction or to otherwise set routing preferences for your payment card network?

YES

NO

If "Yes," briefly describe such contracts in the space provided below:

n
y
o
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N
YES

4. Over the past 10 years, has your organization entered any contracts with merchant acquirers or processors with respect to
the question above?
If "Yes," briefly describe the nature of such contracts in the space below:

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NO

VII.F.) Does your organization currently provide incentives to merchant acquirers or processors to encourage the merchant
acquirer or processor to route a transaction over your payment card network when multiple payment card networks, including
your own, are available to process that transaction or to otherwise set routing preferences for your payment card network?

YES

NO

If "Yes," mark all incentives your organization provides:
a. Lower network fees
b. More favorable terms (briefly describe in the space below)
c. Other (briefly describe in the space below)

n
y
o
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N
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