July 13 -- The Federal Reserve Board of Governors invites comments by September 12, 2022 regarding the continuation of its Debit Card Issuer Survey and Payment Card Network Survey.
The Debit Card Issuer Survey (FR 3064a) collects data from issuers of debit cards (including general-use prepaid cards) that, together with their affiliates, have assets of $10 billion or more. The 3064a collects information regarding the volume and value of debit card transactions; chargebacks and returns; costs of authorization, clearance, and settlement of debit card transactions; other costs incurred in connection with particular debit card transactions; fraud prevention costs and fraud losses; and interchange fee revenue.
The Payment Card Network Survey (FR 3064b) collects data from payment card networks. The survey includes the volume and value of debit card transactions; interchange fees; network fees; and payments and incentives paid by networks to acquirers, merchants, and issuers. When the Board adopted Regulation II, the Board stated that, in order to monitor the effectiveness of the small-issuer exemption from the interchange fee standards, it planned to collect information from payment card networks annually and planned to publish annually a list of the average interchange fees each network provides to its covered and exempt issuers.
The data from the FR 3064a and FR 3064b are used to fulfill a statutory requirement that the Board disclose certain information regarding debit card transactions on a biennial basis. In addition, the Board uses data from the Payment Card Network Survey (FR 3064b) to publicly report on an annual basis the extent to which networks have established separate interchange fees for exempt and covered issuers.
The Debit Card Issuer Survey is required for each debit card issuer that, together with its affiliates, has assets of $10 billion or more. In general, the Debit Card Issuer Survey collects information on two types of debit card programs and transactions: dual-message and singlemessage. Both programs include general-use prepaid card transactions. The survey requests information on accounts and cards associated with accounts domiciled in the United States, the District of Columbia, and U.S. territories. The Debit Card Issuer Survey comprises five sections.
I. Respondent Information: Respondents provide the name of the debit card issuer covered in the response and the contact person(s)’s name, e-mail, and phone number.
II. Information for all Debit Card Transactions (including general-use prepaid card transactions): Respondents report summary information for debit card (including general-use prepaid card) transaction volume and value; chargebacks to and returns from acquirers; costs of authorization, clearance, and settlement; other costs incurred in connection with particular debit card transactions that are not authorization, clearance, and settlement costs; costs for fraud prevention and data security; fraudulent transactions and fraud losses; and interchange fee revenue.
III. Information for Single-Message Debit Card Transactions (excluding general-use prepaid card transactions): Respondents submit data for the same set of questions asked in Section II, above, for single-message debit card programs, excluding general-use prepaid cards.
IV. Information for Dual-Message Debit Card Transactions (excluding general-use prepaid card transactions): Respondents submit data for the same set of questions asked in Section II, above, for dual-message debit card programs, excluding general-use prepaid cards.
V. Information for General-Use Prepaid Card Transactions: Respondents submit data for the same set of questions asked in Section II, above, for general-use prepaid card transactions.
The Payment Card Network Survey is required for all entities that are considered “payment card networks” under Regulation II. The payment card network survey requests information on domestic debit card transactions (i.e., those in which both the merchant and account debited are located in the United States). Regulation II requires each payment card network to submit information about debit card (including general-use prepaid card) transactions in a form prescribed by the Board. The Payment Card Network Survey comprises two sections.
I. Respondent Information: Respondents provide the network covered in this response and the contact person(s)’s name, e-mail, and phone number. Respondents also report whether the payment card network is a single-message or dual-message network. In the event that a network processes both single-message and dual-message transactions, the network must complete a survey for each type of transaction.
II. Information on Debit Card Transactions (including general-use prepaid card transactions): Respondents report summary information for the volume and value of all debit card transactions; chargebacks to and returns from acquirers; the volume and value of transactions involving exempt and non-exempt issuers; the volume and value of transactions involving exempt and non-exempt general-use prepaid card transactions; the value of interchange fees for all transactions, exempt/non-exempt issuers, and exempt general-use prepaid card transactions; the value of network fees; and payments and incentives paid by networks to acquirers, merchants, and issuers.
Draft reporting form:
https://www.federalreserve.gov/reportforms/formsreview/PCN_Survey_2021_redline.pdf
Draft technical documentation:
https://www.federalreserve.gov/reportforms/formsreview/FR%203064%20OMB%20SS%202022.pdf
FRN:
https://www.federalregister.gov/d/2022-14870