Regulation II - Debit Card Interchange Fees and Routing [R-1404]

The Federal Reserve Board is requesting comment on two alternative interchange fee standards that would apply to all covered debit card issuers: one based on each issuer's costs, with a safe harbor (initially set at 7 cents per transaction) and a cap (initially set at 12 cents per transaction); and the other a stand-alone cap (initially set at 12 cents per transaction). Under both alternatives, circumvention or evasion of the interchange fee limitations would be prohibited. The Fed also is requesting comment on possible frameworks for an adjustment to the interchange fees to reflect certain issuer costs associated with fraud prevention.

Closing date for comments: 02/22/2011

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