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Debit Card Interchange Fees and Routing

Fed · final-rule · Published 2011-07-20 · Effective 2011-10-01 · 76 FR 43478

Document

Document number
2011-16860
Federal Register citation
76 FR 43478
CFR reference
12 CFR 235
Type
Rule
Action
Interim final rule; request for public comment.
Category
final-rule
Agency
US Federal Reserve System
Publication date
2011-07-20
Effective date
2011-10-01
Docket
Regulation II

Abstract

The Board is adopting an interim final rule and requesting comment on provisions in Regulation II (Debit Card Interchange Fees and Routing) adopted in accordance with Section 920(a)(5) of the Electronic Fund Transfer Act, which governs adjustments to debit interchange transaction fees for fraud-prevention costs. The provisions allow an issuer to receive an adjustment of 1 cent to its interchange transaction fee if the issuer develops, implements, and updates policies and procedures reasonably designed to identify and prevent fraudulent electronic debit transactions; monitor the incidence of, reimbursements received for, and losses incurred from fraudulent electronic debit transactions; respond appropriately to suspicious electronic debit transactions so as to limit the fraud losses that may occur and prevent the occurrence of future fraudulent electronic debit transactions; and secure debit card and cardholder data. If an issuer meets these standards and wishes to receive the adjustment, it must certify its eligibility to receive the fraud-prevention adjustment to the payment card networks in which the issuer participates.

Source

Authoritative
Federal Register document
Machine
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