Debit Card Interchange Fees

Question 1

Which of the following is not exempt from the rules on reasonable and proportional pricing of electronic debit transactions?
a. A debit card issued by a community bank with $8 billion in assets
b. A debit card issued by the federal government for payment of benefits
C. A debit card issued by a community bank with $7 billion in assets, affiliated with another depository institution with assets of $5 billion
d. A prepaid card that cannot access a bank account

Answer 1

C. A debit card issued by a community bank with $7 billion in assets, affiliated with another depository institution with assets of $5 billion

Question 2

Which of the following statements is true?
a. A payment card network may require an issuer to agree that the issuer will only issue cards that are paid through the payment card network or one of its affiliates.
b. Payment card networks can restrict a merchant’s ability to route electronic debit card transactions as long as they don’t restrict it to less than two unaffiliated networks.
C. If unaffiliated payment card networks merge, issuers have one year from the effective date of the merger to add an unaffiliated payment card network.
d. An issuer can meet the requirements of the network exclusivity rule by allowing transactions to be processed on two unaffiliated payment card networks that don’t restrict transactions based on geography, merchant or transaction type

Answer 2

d. An issuer can meet the requirements of the network exclusivity rule by allowing transactions to be processed on two unaffiliated payment card networks that don’t restrict transactions based on geography, merchant or transaction type

Question 3

In order to qualify for the fraud prevention adjustment an issuer must:
a. Prove that it has historical losses that average at least 1 percent of its transactions each calendar year
b. Implement fraud prevention and detection policies
c. Offer identify theft protection to its cardholders
d. Allow debit transactions to be processed on at least three unaffiliated payment card networks

Answer 3

b. Implement fraud prevention and detection policies