Small issuer exemption list for debit card issuers
AML AND COMPLIANCE NEWS |
In early May 2017, the Board of Governors of the Federal Reserve System (Board) published two lists to help debit card issuers determine whether they are exempt (Exemption List) from Regulation II (Debit Card Interchange Fees and Routing). Regulation II was enacted in 2011 and sets standards for how much debit card issuers can charge as an interchange fee for debit card transactions. Small debit card issuers are exempt from the interchange standards. Issuers are considered small if they and all affiliates have combined assets of less than $10 billion.
Using data as of Dec. 31, 2016, the Board has published two lists on its website. One list outlines institutions that are exempt from Regulation II, while the second list outlines institutions that are not exempt from Regulation II. These lists should make it easier for debit card issuers to determine whether they are exempt from debit card interchange limits imposed under the regulation. Some debit card issuers may not appear on either list, it is then the responsibility of the debit card issuer to determine if it is exempt and notifies its participating payment card networks of the exemption. Both the exempt list and the nonexempt list are available for download on the Federal Reserve’s website as a PDF, CSV and HTM format.