(a) Exemption
for small issuers.
(1) In general. Except as provided
in paragraph (a)(3) of this section, sections 235.3, 235.4, and 235.6
do not apply to an interchange transaction fee received or charged
by an issuer with respect to an electronic debit transaction if—
(i) The issuer holds
the account that is debited; and
(ii) The issuer, together with its affiliates, has assets of less
than $10 billion as of the end of the calendar year preceding the
date of the electronic debit transaction.
(2) Determination
of issuer asset size. A person may rely on lists published by
the Board to determine whether an issuer, together with its affiliates,
has assets of less than $10 billion as of the end of the calendar
year preceding the date of the electronic debit transaction.
(3) Change in
status. If an issuer qualifies for the exemption in paragraph
(a)(1) in a particular calendar year, but, as of the end of that calendar
year no longer qualifies for the exemption because at that time it,
together with its affiliates, has assets of $10 billion or more, the
issuer must begin complying with sections 235.3, 235.4, and 235.6
no later than July 1 of the succeeding calendar year.
(4) (i) Temporary relief for 2020 and 2021. Except as provided in paragraph
(a)(4)(ii) of this section, for purposes of determining eligibility
for the exemption for small issuers described in paragraph (a)(1)
of this section, issuer asset size that is calculated as of the end
of the calendar year 2020 shall be determined based on the lesser
of:
(A) The assets of
the issuer, together with its affiliates, as of the end of the calendar
year 2019; and
(B) The assets of the
issuer, together with its affiliates, as of the end of the calendar
year 2020.
(ii)
The relief provided under this paragraph (a)(4) does not apply to
an issuer if the Board determines that permitting the issuer to determine
its assets in accordance with that paragraph would not be commensurate
with the asset profile of the issuer. When making this determination,
the Board will consider all relevant factors, including the extent
of asset growth of the issuer since December 31, 2019; the causes
of such growth, including whether growth occurred as a result of mergers
or acquisitions; whether such growth is likely to be temporary or
permanent; whether the issuer has become involved in any additional
activities since December 31, 2019; the asset size of any parent companies;
and the type of assets held by the issuer. In making a determination
pursuant to this paragraph (a)(4)(ii), the Board will apply notice
and response procedures in the same manner and to the same extent
as the notice and response procedures in 12 CFR 263.202.
(b) Exemption for government-administered
programs. Except as provided in paragraph (d) of this section,
sections 235.3, 235.4, and 235.6 do not apply to an interchange transaction
fee received or charged by an issuer with respect to an electronic
debit transaction if—
(1)
The electronic debit transaction is made using a debit card that has
been provided to a person pursuant to a Federal, State, or local government-administered
payment program; and
(2) The cardholder
may use the debit card only to transfer or debit funds, monetary value,
or other assets that have been provided pursuant to such program.
(c) Exemption for certain
reloadable prepaid cards.
(1) In general. Except as provided in paragraph (d) of this section, sections 235.3,
235.4, and 235.6 do not apply to an interchange transaction fee received
or charged by an issuer with respect to an electronic debit transaction
using a general-use prepaid card that is—
(i) Not issued or approved for use to
access or debit any account held by or for the benefit of the cardholder
(other than a subaccount or other method of recording or tracking
funds purchased or loaded on the card on a prepaid basis);
(ii) Reloadable and not marketed or
labeled as a gift card or gift certificate; and
(iii) The only means of access to the
underlying funds, except when all remaining funds are provided to
the cardholder in a single transaction.
(2) Temporary
cards. For purposes of this paragraph (c), the term “reloadable”
includes a temporary non-reloadable card issued solely in connection
with a reloadable general-use prepaid card.
(d) Exception. The exemptions in paragraphs
(b) and (c) of this section do not apply to any interchange transaction
fee received or charged by an issuer on or after July 21, 2012, with
respect to an electronic debit transaction if any of the following
fees may be charged to a cardholder with respect to the card:
(1) A fee or charge for an overdraft,
including a shortage of funds or a transaction processed for an amount
exceeding the account balance, unless the fee or charge is imposed
for transferring funds from another asset account to cover a shortfall
in the account accessed by the card; or
(2) A fee imposed by the issuer for the
first withdrawal per calendar month from an ATM that is part of the
issuer’s designated ATM network.
