Form FR 3064b FR 3064b 2013 PAYMENT CARD NETWORK SURVEY (FR 3064b)

FR 3064b
OMB No. 7100-0344
Approval expires January 31, 2017

PAYMENT CARD NETWORK SURVEY

Survey Period:
Calendar Year 2013

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General Instructions
About this Survey
Section 235.8 of the Federal Reserve Board’s Regulation II requires payment card networks to file reports
with the Board. This survey serves as this report. This survey solicits information from calendar year
2013 regarding (1) volumes and values of debit card transactions (including general-use 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. If your organization has
both single-message and dual-message networks, complete a separate survey for each type of network.
Your Participation
To achieve the most reliable results, it is important that you respond completely and accurately. Please
leave no survey item blank.
There are three possible ways to answer a survey question:
Enter a Value: The actual numeric value of the data element.
Enter a Zero: When the calculated value equals zero. Please do not enter a non-numeric
value, e.g. “NA” or “NR,” when the value equals zero.
Enter “NR” (Not Reported): If your institution engages in the activity of the type being measured
but you are unable to report a figure that reflects that activity. Please do not enter “NA.”
If for any reason you cannot provide complete data or you have questions, please contact Linda
Healey at 202-452-5274 or e-mail [email protected] for assistance.
Please complete the survey by March 17, 2014.
Response Confidentiality and Burden
The Board will use the information collected in this survey to calculate and publish a list of the average
interchange fees, average transaction values, and proportion of transactions for exempt and non-exempt
issuers for each network (see 12 CFR 235.5 for a description of exempt issuers), noting whether the
network is a single-message or dual-message network. The Board will not publish other network-specific
information, such as transaction volumes and values or the number of merchant establishments
participating on the network; the Board regards this individual organization information as confidential (5
U.S.C. § 552(b)(4)). However, the Board may use this information to publish aggregate or summary
information that does not reveal any confidential information about each individual organization. If it
should be determined subsequently that any additional individual organization information collected on
this form must be released, the respondents will be notified.
Public reporting burden for this collection of information is estimated to be 75 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 e-mail to
[email protected]; and to the Office of Management and Budget, Paperwork Reduction Project
(7100-0344), Washington, D.C. 20503. 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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Section I:

Respondent Information

1. Name of network covered in this response

2. Contact person(s) by subsection of the survey for which responsible
Name

Email

Subsection

Phone

Name

Email

Subsection

Phone

Name

Email

Subsection

Phone

Name

Email

Subsection

Phone

3. Does your payment card network process both
single-message transactions and dualmessage transactions?

[

] Yes

[

] No

If yes, complete a survey for each type of transaction.
Additional log-in information will be required. Please
email [email protected] for
assistance.

4. What type of transactions are reported in this
response?

[ ] Singlemessage

[ ] Dual-message

5. Does your payment card network offer an
interchange fee rate schedule that differentiates
between exempt and non-exempt issuers?

[

[

6. Number of merchant establishments (i.e.,
separate locations) in the United States

3

] Yes

] No

Section II: Debit Card Transactions
(including general-use prepaid card transactions)
Please enter totals only for transactions related to debit cards linked to U.S.-domiciled accounts involving
a merchant located in the United States during the calendar year (CY) 2013.
Include:

All debit card transactions (including general-use prepaid card transactions).
Both consumer and business card transactions.

Do Not Include: ATM or credit card transactions.

1. CY 2013 debit card transactions

Volume

Value ($)

Volume

Value ($)

1a. Settled purchase transactions (excluding preauthorizations, denials, adjustments, returns, and cash
back)

Card-present vs. card-not-present transactions
1b. Allocate “1a. Settled purchase transactions”
between the following categories:

1a:

1a:

1b.1 + 1b.2 = 1a

1b.1 Card-present transactions
1b.2 Card-not-present transactions

CY 2013 chargebacks and returns

Volume

1c. Total chargebacks to acquirers
Report all chargebacks sent in CY 2013 regardless of the
date the original purchase transaction took place.

1d. Total returns to acquirers
Report all returns sent in CY 2013 regardless of the date
the original purchase transaction took place.

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Value ($)

Small issuer exemption:
Transactions using cards of exempt vs. nonexempt issuers
1e. Allocate “1a. Settled purchase transactions”
between the following categories:

Volume

1a:

Value ($)

1a:

1e.1 + 1e.2 = 1a

1e.1 Settled purchase transactions made with a debit
card issued by exempt issuers
1e.2 Settled purchase transactions made with a debit
card issued by non-exempt issuers (include all
transactions by non-exempt issuers, even
though some transactions might be exempt)
General-use prepaid card transactions vs. all
other debit card transactions
1f. Allocate “1a. Settled purchase transactions”
between the following categories:
1f.1 + 1f.2 = 1a

1f.1 General-use prepaid card transactions
1f.2 All other debit card transactions

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Volume

1a:

Value ($)

1a:

General-use prepaid card exemption:
Exempt vs. non-exempt general-use prepaid
card transactions
1g. Allocate “1f.1 General-use prepaid card
transactions” between the following categories:

Volume

1f.1:

Value ($)

1f.1:

1g.1 + 1g.2 = 1f.1

1g.1 General-use prepaid card transactions
exempt from the interchange fee standards
(include all general-use prepaid card
transactions by exempt issuers and exempt
transactions by non-exempt issuers)
1g.1.1 + 1g.1.2 = 1g.1

1g.1.1 General-use prepaid card transactions
by exempt issuers
1g.1.2 General-use prepaid card exempt
transactions by non-exempt issuers
1g.2 General-use prepaid card transactions not
exempt from the interchange fee standards
(only include non-exempt transactions by nonexempt issuers)
2. CY 2013 interchange fees

Dollars ($)

2a. Interchange fees paid by acquirers and
received by issuers (gross interchange fees)
2a.1 Interchange fees reimbursed to acquirers as a
result of chargebacks
Report all chargebacks sent in CY 2013 regardless
of the date the original purchase transaction took
place.

2a.2 Interchange fees reimbursed to acquirers as a
result of returns
Report all returns sent in CY 2013 regardless of the
date the original purchase transaction took place.

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Interchange fees on chargebacks
2b. For cases when a chargeback involves an entire
transaction, does your payment card network refund to
acquirers all the interchange fees?

[

] Yes

[

] No

2b.1 If your answer to 2b. was “No” does your
payment card network refund to acquirers any
or all of the ad valorem component of the
interchange fees for these types of
chargebacks?

[

] Yes

[

] No

2b.2 If your answer to 2b. was “No” does your
payment card network refund to acquirers any
or all of the fixed per-transaction component of
the interchange fees for these types of
chargebacks?

[

] Yes

[

] No

2c. For cases when a chargeback involves only a
portion of the transaction, does your payment card
network refund to acquirers all the interchange fees?

[

] Yes

[

] No

2c.1 If your answer to 2c. was “No” does your
payment card network refund to acquirers any
or all of the ad valorem component of the
interchange fees for these types of
chargebacks?

[

] Yes

[

] No

2c.2 If your answer to 2c. was “No” does your
payment card network refund to acquirers any
or all of the fixed per-transaction component of
the interchange fees for these types of
chargebacks?

[

] Yes

[

] No

If your answer is “Yes” proceed to question 2c.

If your answer is “Yes” proceed to question 2d.

Please provide any explanatory comments you believe may be necessary for 2b and 2c:

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Interchange fees on returns
2d. For cases when a customer returns an entire
purchase transaction to a merchant, does your
payment card network refund to acquirers all the
interchange fees?

[

] Yes

[

] No

2d.1 If your answer to 2d. was “No” does your
payment card network refund to acquirers any
or all of the ad valorem component of the
interchange fees for these types of returns?

[

] Yes

[

] No

2d.2 If your answer to 2d. was “No” does your
payment card network refund to acquirers any
or all of the fixed per-transaction component of
the interchange fees for these types of returns?

[

] Yes

[

] No

2e. For cases when a customer returns only a portion of
a purchase transaction to a merchant, does your
payment card network refund to acquirers all the
interchange fees?

[

] Yes

[

] No

2e.1 If your answer to 2e. was “No” does your
payment card network refund to acquirers any
or all of the ad valorem component of the
interchange fees for these types of returns?

[

] Yes

[

] No

2e.2 If your answer to 2e. was “No” does your
payment card network refund to acquirers any
or all of the fixed per-transaction component of
the interchange fees for these types of returns?

[

] Yes

[

] No

If your answer is “Yes” proceed to question 2e.

If your answer is “Yes” proceed to question 2f.

Please provide any explanatory comments you believe may be necessary for 2d and 2e:

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Card-present vs. card-not-present interchange
fees
2f. Allocate “2a. Interchange fees paid by
acquirers and received by issuers” between
the following categories:

Dollars ($)

2a:

2f.1 + 2f.2 = 2a

2f.1 Interchange fees on card-present
transactions
2f.2 Interchange fees on card-not-present
transactions
Small issuer exemption:
Interchange fees on transactions using cards of
exempt vs. non-exempt issuers
2g. Allocate “2a. Interchange fees paid by
acquirers and received by issuers” between
the following categories:
2g.1 + 2g.2 = 2a

2g.1 Interchange fees paid to exempt issuers
2g.2 Interchange fees paid to non-exempt issuers
(include all interchange fees paid to non-exempt
issuers, even though some interchange fees
might come from exempt transactions)

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Dollars ($)

2a:

General-use prepaid card transactions vs. all
other debit card transactions
2h. Allocate “2a. Interchange fees paid by
acquirers and received by issuers” between
the following categories:

Dollars ($)

2a:

2h.1 + 2h.2 = 2a

2h.1 Interchange fees on general-use prepaid
card transactions
2h.2 Interchange fees on all other debit card
transactions
General-use prepaid card exemption:
Interchange fees on exempt vs. non-exempt
card transactions
2i. Allocate “2h.1 Interchange fees on general-use
prepaid card transactions” between the following
categories:
2i.1 + 2i.2 = 2h.1

2i.1 Interchange fees on exempt general-use
prepaid card transactions (include
interchange fees paid to exempt issuers for all
general-use prepaid card transactions and paid
to non-exempt issuers for exempt general-use
prepaid card transactions)
2i.1.1 + 2i.1.2 = 2i.1

2i.1.1 Interchange fees paid to exempt
issuers for all general-use prepaid card
transactions
2i.1.2 Interchange fees paid for general-use
prepaid card exempt transactions by
non-exempt issuers
2i.2 Interchange fees on non-exempt general-use
prepaid card transactions (only include
interchange fees paid to non-exempt issuers for
non-exempt transactions)

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Dollars ($)

2h.1:

3. CY 2013 network fees

Dollars ($)

3a. Network fees received from acquirers and
issuers

Network fees received from acquirers vs.
issuers
3b. Allocate “3a. Network fees received from
acquirers and issuers” between the following
categories:

Dollars ($)

3a:

3b.1 + 3b.2 = 3a

3b.1 Network fees received from acquirers
3b.2 Network fees received from issuers
Small issuer exemption:
Network fees received from exempt vs. nonexempt issuers
3c. Allocate “3b.2. Network fees received from issuers”
between the following categories:
3c.1 + 3c.2 = 3b.2

3c.1 Network fees received from exempt issuers
3c.2 Network fees received from non-exempt
issuers (include network fees paid by nonexempt issuers, even though some transactions
might be exempt)

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Dollars ($)

3b.2:

4. CY 2013 payments and incentives paid by
network to acquirers, merchants, and issuers
4a.

Payments and incentives paid by network
to acquirers, merchants, and issuers

4b.

Allocate “4a. Payments and incentives paid
by network to acquirers, merchants, and
issuers” between the following categories:

Dollars ($)

4a:

4b.1 + 4b.2 = 4a

4b.1

Payments and incentives paid to acquirers
and merchants

4b.2

Payments and incentives paid to issuers

Small issuer exemption:
Payments and incentives paid to exempt vs.
non-exempt issuers
4c. Allocate “4b.2 Payments and incentives paid to
issuers” between the following categories
4c.1 + 4c.2 = 4b.2

4c.1 Payments and incentives paid to exempt
issuers
4c.2 Payments and incentives paid to non-exempt
issuers (include payments and incentives paid
to non-exempt issuers, even though some
transactions might be exempt)

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Dollars ($)

4b.2:

Glossary of Terms
Acquirer: A person that contracts directly or indirectly with a merchant to provide settlement for the
merchant’s electronic debit transactions over a payment card network. An acquirer does not include
a person that acts only as a processor for the services it provides to the merchant.
Card-not-present transaction: Settled purchase transaction where the purchaser does not
physically present the card to the merchant, such as an Internet, telephone, or mail order transaction.
Card-present transaction: Settled purchase transaction where the purchaser physically presents
the card to the merchant.
Chargeback to acquirer: The reversal of the dollar value of a particular transaction, in whole or in
part, by the card issuer to the acquirer. A chargeback may be for, but not limited to, one of the
following reasons: customer disputes, fraud, processing errors, authorization issues, and nonfulfillment of copy requests.
Debit card: Any card or other payment code or device, issued or approved for use through a payment
card network to debit an account, regardless of the means of authorization, and regardless of whether
the issuer holds the account. A debit card includes any general-use prepaid card. It does not include
(1) 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 (2) a check draft or similar
paper instrument, or an electronic representation thereof.
Debit card transaction: Use of a debit card (including a general-use prepaid card) by a person as a
form of payment in the United States to initiate a debit to an account. It does not include credit card
transactions or transactions initiated at an ATM.
Dual-message transaction: Transaction type by which authorization information is carried in one
message and clearing information is carried in a separate message as originated from the acquirer.
Typically, these transactions are authenticated with a signature.
Exempt general-use prepaid card transaction: Transaction using a general-use prepaid card
that is exempt from the interchange fee standards in Regulation II, specifically (1) a transaction made
using a general-use prepaid card that has been provided to a person pursuant to a federal, state, or
local government-administered payment program through which the cardholder may use the debit
card only to transfer or debit funds, monetary value, or other assets that have been provided pursuant
to such program; (2) a transaction made using a general-use prepaid card that is (i) not issued or
approved for use to access or debit any account held by or for the benefit of the cardholder (other
than a subaccount or other method of recording or tracking funds purchased or loaded on the card on
a prepaid basis), (ii) reloadable and not marketed or labeled as a gift card or gift certificate, and (iii)
the only means of access to the underlying funds, except when all remaining funds are provided to
the cardholder in a single transaction.
Exempt issuer: An issuer is exempt from the interchange fee standards for CY 2013 if that issuer has
total worldwide banking and nonbanking assets, including assets of affiliates, other than trust assets
under management, that are less than $10 billion, as of December 31, 2012.
General-use prepaid card: A card or other payment code or device that is (1) issued on a prepaid
basis in a specified amount, whether or not that amount may be increased or reloaded, in exchange
for payment and (2) redeemable upon presentation at multiple unaffiliated merchants for goods or
services.

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Interchange fees paid by acquirers and received by issuers: Any fee established, charged,
or received by a payment card network and paid by a merchant or an acquirer for the purpose of
compensating an issuer for its involvement in the debit card transaction.
Issuer: Any person that authorizes the use of a debit card to perform an electronic debit transaction.
Network fees received from acquirers and issuers: Total switch fees and other fees charged
by card networks, including both fixed fees and per-transaction fees. Exclude fees for optional
services related to transaction processing that may be provided by a card network or an affiliate of a
card network.
Number of merchant establishments: For a specific payment card network, the number of
locations at which merchants accept payments on that network in the United States. For chains,
report each location of the chain separately. For example, if a chain has 25 locations then report 25
establishments for that chain. If a location has 10 separate check-out lines with PIN terminals, report
that as one location.
Payments and incentives paid by network to acquirers, merchants, and issuers:
Payments made by the payment card network to acquirers, merchants, and issuers with respect to
debit card transactions or debit-card-related activity. Acquirer, merchant, and issuer incentives may
be based on reaching specified volume levels, marketing activities that promote the network’s brand,
converting the issuer’s debit card base to a different signature network, or other activities. Exclude
payments that a network pays an issuer for traditional banking services the issuer provides the
network (e.g., transaction account services to the network).
Return to acquirer: A transaction, in whole or in part, that is returned to an acquirer for the return of
goods and services by the cardholder.
Settled purchase transaction: A debit card transaction that has been settled. Exclude
transactions that are pre-authorizations, denials, adjustments, returns, and cash back.
Single-message transaction: Transaction type by which authorization and clearing information is
carried in one message as originated from the acquirer. Typically, these transactions are
authenticated with a PIN.
Three-party systems: Systems where debit transactions are processed by an entity that acts as
system operator and issuer, and may also act as the acquirer.
United States: The states, territories, and possessions of the U.S., the District of Columbia, the
Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing.

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