Regulation II - Debit Card Interchange
Fees and Routing (12 CFR Part 235) implements standards for
assessing whether interchange transaction fees for electronic debit
transactions are reasonable and proportional to the cost incurred
by the issuer with respect to the transaction, and establishes
rules for payment card transactions as required by section 920(a)
of the Electronic Fund Transfer Act (EFTA) (15 U.S.C. §
1693o-2(a)). Regulation II limits the interchange transaction fee
that covered issuers (issuers that, together with affiliates, have
assets of $10 billion or more) can charge for electronic debit
transactions. Under the rule, a covered debit card issuer is
allowed to receive or charge an interchange transaction fee in the
amount of 21 cents plus 5 basis points multiplied by the value of
the transaction. In addition, a covered issuer may receive or
charge an amount of no more than 1 cent per transaction (the
fraud-prevention adjustment) for the costs associated with
preventing fraudulent electronic debit transactions
(fraud-prevention adjustment) if the issuer complies with the
standards and requirements set forth in the rule. In addition to
these interchange fee provisions, Regulation II prohibits any
issuer (i.e., not just covered issuers) or payment card network
from directly or indirectly restricting the number of payment card
networks on which an electronic debit transaction may be processed
to less than two unaffiliated networks, and from directly or
indirectly inhibiting the ability of a merchant to direct the
routing of electronic debit transactions for processing over any
payment card network that may process such transactions. Finally,
Regulation II prohibits any issuer from receiving net compensation
from a payment card network with respect to electronic debit
transactions or debit card-related activities within a calendar
year. Debit card issuers must retain records demonstrating their
compliance with the requirements in Regulation II for at least five
years after the end of the calendar year in which the electronic
debit transaction occurred. In addition, any person (including an
issuer or payment card network) subject to an investigation or
enforcement proceeding involving Regulation II must retain records
pertaining to the matter until the final disposition of the matter,
unless an earlier time is allowed by court or agency order. The
Paperwork Reduction Act (PRA) classifies reporting, recordkeeping,
or disclosure requirements of a regulation as an information
collection.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
FRII_20220726_omb.pdf
Disclosure Sections 235.4(c) and (d) Annual fraud-prevention compliance notification and change-in-status notification