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Can you summarize 12 CFR Part 235?
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > DEBIT CARD INTERCHANGE FEES AND ROUTING (REGULATION II)
Short Summary
The provided legal document content pertains to Debit Card Interchange Fees and Routing (Regulation II) issued by the Board of Governors of the Federal Reserve System. The regulation governs various entities involved in electronic debit transactions, including acquirers, cardholders, issuers, merchants, payment card networks, and processors. It establishes rules and requirements for reasonable and proportional interchange transaction fees, fraud-prevention adjustments, exemptions, prohibitions on evasion and circumvention, payment card network exclusivity arrangements, routing restrictions, and reporting requirements. The regulation defines key terms and provides exemptions for certain types of accounts, cards, and payment instruments. It does not specify any penalties for non-compliance or violation. Overall, the regulation aims to ensure fair and competitive practices in debit card interchange fees and routing in the United States.
Whom does it apply to?
Acquirers, cardholders, issuers, merchants, payment card networks, and processors involved in electronic debit transactions
What does it govern?
Debit card interchange fees and routing
What are exemptions?
Exemptions are provided for small issuers, government-administered programs, and certain reloadable prepaid cards
What are the Penalties?
No specific penalties are mentioned
Jurisdiction
U.S. Federal Government