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Can you summarize 15 USC 1693o2?
ELECTRONIC FUND TRANSFERS > Reasonable fees and rules for payment card transactions
Short Summary
This legal document, found in the United States Code under the section on Consumer Credit Protection and Electronic Fund Transfers, governs the establishment of reasonable fees and rules for payment card transactions. It grants regulatory authority to the Board to prescribe regulations regarding interchange transaction fees for electronic debit transactions. The regulations aim to ensure that the amount of interchange transaction fees charged by issuers is reasonable and proportional to the cost incurred by the issuer. The document also addresses adjustments to interchange transaction fees for fraud prevention costs and provides exemptions for small issuers, government-administered payment programs, and reloadable prepaid cards. Additionally, it limits payment card network restrictions, such as exclusivity arrangements and routing restrictions, and prohibits inhibiting discounts or setting transaction minimums or maximums. The document defines various terms, including affiliate, debit card, credit card, discount, electronic debit transaction, Federal agency, institution of higher education, interchange transaction fee, issuer, network fee, and payment card network. Enforcement of the requirements imposed by this document is done under section 1693o of the United States Code.
Whom does it apply to?
Issuers, payment card networks, consumers, merchants
What does it govern?
Reasonable fees and rules for payment card transactions
What are exemptions?
Small issuers with assets less than $10,000,000,000, government-administered payment programs, reloadable prepaid cards
What are the Penalties?
Not specified
Jurisdiction
U.S. Federal Government