Advance copies of the Federal Reserve’s Final Rule on Debit Card Interchange and Routing and the Board’s Interim Final Rule (IFR) with Comment Period on adjusting allowable interchange fees for fraud prevention costs. As the IFR states,
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.
Comments are due by Septmeber 30, 2011.
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