Form FR 3062 FR 3062 Issuer survey

Card issuer survey

FR 3062
OMB. No. 7100-[NEW]
Approval Expires Feb. 2011

FR 3062
Response form
Affiliates covered in this survey response

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Unique identifier (provided in cover letter to survey)
Primary contact for this survey response
Name:
Email:
Phone:

This report is required by law [Pub. L. 111-203, § 1075, 124 Stat. 1376 (2010)].

The Federal Reserve Board regards the individual organization information provided by each respondent as confidential (5 U.S.C. § 552(b)(4)). If it should
be determined subsequently that any information collected on this form must be released, the respondents will be notified. The Federal Reserve may not
conduct or sponsor, and an organization (or a person) is not required to respond to, a collection of information unless it displays a currently valid OMB
control number.
Public reporting burden for this collection of information is estimated to average 250 hours per response, including the time to gather the data in the required
form and to review instructions and complete the information collection. Send comments regarding this burden estimate or any other aspect of this
collection of information, including suggestions for reducing this burden to: Secretary, Board of Governors of the Federal Reserve System, 20th and C
Streets, N.W., Washington, D.C. 20551, or via email to regs.comments@frb.gov; and to the Office of Management and Budget, Paperwork Reduction
Project (7100-0079), Washington, D.C. 20503.

Please refer to the instructions that accompanied this survey. Do not leave any cells in the survey blank. If a response to a particular cell does not exist,
enter a 0. If a response to a particular cell cannot be determined, enter DK for “don’t know.” If you have other questions or difficulties, Board staff can
assist you. Please call Jennifer Davidson at 202-452-2446 or email Interchange.Survey@frb.gov for assistance. Provide your name, organization, and
contact information along with your inquiry when you call or email.

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Card program

Card issuer survey
Debit
(1)

FR 3062
I. Card program information
Number of accounts
A) Total accounts
1. Annual average
Number of accounts by customer type
2. Consumer
3. Business
4. Other
Number of cards
B) Total cards
1. Annual average
2. Active
a. Annual average
3. Issued during year
a. Newly issued
b. Reissued
i. Compromised cards
ii. Other reissued cards
4. Respondent cards
Number of cards by network access
5. Signature and PIN
a. One PIN network, affiliated
b. One PIN network, unaffiliated
c. Two or more PIN networks
6. PIN only
a. One PIN network
b. Two or more PIN networks
7. Signature only
8. Multiple signature networks
Number of cards by program type
9. Government program
10. Non-government program
a. Reloadable
i. Gift
ii. Non-gift
b. Non-reloadable
Number of cards by customer type
11. Consumer
12. Business
13. Other

Prepaid
(2)

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Card issuer survey

Card program
PIN debit
(2)

Signature debit
(1)

FR 3062
Number

Value

Number

II. Card program activity
Purchases and returns
A) Total transactions
1. Transactions with cash-back
a. Cash-back amount
Transaction environment
2. Card-present
3. Card-not-present
Transaction type
4. Purchase
5. Return
Transaction location
6. Domestic
7. International
Chargebacks and other errors
B) Total chargebacks and other errors
1. Chargebacks
a. Unauthorized transactions
i. Representments
b. Other
i. Representments
2. Errors not charged back
a. Unauthorized transactions
b. Other
Other activity
C) Authorizations without value transfer
D) Denials
E) Funds loads to cards
F) ATM transactions
Revenue
G) Interchange
H) Card-related transaction fees
I) Penalty fees
J) Other cardholder fees

Prepaid
(3)
Value

Number

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Value

Card issuer survey
FR 3062

Signature debit
(1)

III. Processing costs
All processing activity
A) Total processing costs
1. In-house costs
a. Fixed
b. Variable
2. Third-party fees
a. Fixed
b. Variable
3. Network fees
Routine transaction processing
4. Total processing costs
a. In-house costs
i. Fixed
ii. Variable
b. Third-party fees
i. Fixed
ii. Variable
c. Network fees
Authorization
d. Total costs
i. In-house costs
ii. Third-party fees
Interbank clearing and settlement
e. Total costs
i. In-house costs
ii. Third-party fees
Cardholder account posting
f. Total costs
i. In-house costs
ii. Third-party fees
Chargeback and other error processing
5. Total processing costs
a. In-house costs
i. Fixed
ii. Variable
b. Third-party fees
i. Fixed
ii. Variable
c. Network fees

Card program
PIN debit
(2)

Prepaid
(3)

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Card issuer survey
FR 3062

Signature debit
(1)

IV. Card program costs
Card production and delivery
A) Total costs
1. In-house costs
2. Third-party fees
Cardholder inquiries
B) Total costs
1. In-house costs
2. Third-party fees
Rewards and other incentives
C) Total costs
1. Program administration
2. Rewards
3. Affinity partner revenue-sharing
Network fees
D) Total non-transaction-processing fees
Research and development
E) Total costs
Nonsufficient funds handling
F) Total costs
Compliance
G) Total costs

Card program
PIN debit
(2)

Prepaid
(3)

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Card issuer survey
Signature debit
(1)

FR 3062
V. Fraud prevention activity costs and data security costs
Fraud prevention activity
A) Total cost
1. In-house costs
2. Third-party fees
B) Type of activity (please list with brief description)
1. Card activation systems
2. PIN customization
3. Merchant blocking
4. Transaction monitoring
5. Specialized authorization services
6. Cardholder authentication systems
7. Card authentication systems
8.
9.
10.
11.
12.
13.
14.
15.
16.
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18.
19.
20.
21.
22.
23.
24.
25.

Card program
PIN debit
(2)

Prepaid
(3)

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Card issuer survey
Signature debit
(1)

FR 3062
V. Fraud prevention activity costs and data security costs
Data security
C) Total cost
1. In-house costs
2. Third-party fees
D) Type of activity (please list with brief description)
1. Data access controls
2. Data encryption
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Research and development
E) Total cost
Offsets for fraud prevention activity costs and data security costs
F) Total

Card program
PIN debit
(2)

Prepaid
(3)

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Card issuer survey
FR 3062
VI.A. PIN Debit Fraud Activity and Losses

Type of fraud
1 Lost or stolen
2 Counterfeit
3 Mail order, telephone order, internet order
4 Account takeover
5 Family fraud
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Total PIN debit

Number of fraudulent transactions
Chargebacks net of
Gross
representments
Recoveries
(1)
(2)
(3)

Gross
(4)

Value of fraudulent transactions
Chargebacks net of
representments
Recoveries
(5)
(6)

Net fraud losses
(7)

Percentage of net fraud losses after
representments and recoveries
Cardholders
Your institution
(%)
(%)
(8)
(9)

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Card issuer survey
FR 3062
VI.B. Signature Debit Fraud Activity and Losses

Type of fraud
1 Lost or stolen
2 Counterfeit
3 Mail order, telephone order, internet order
4 Account takeover
5 Family fraud
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Total signature debit

Number of fraudulent transactions
Chargebacks net of
Gross
representments
Recoveries
(1)
(2)
(3)

Gross
(4)

Value of fraudulent transactions
Chargebacks net of
representments
Recoveries
(5)
(6)

Net fraud losses
(7)

Percentage of net fraud losses after
representments and recoveries
Cardholders
Your institution
(%)
(%)
(8)
(9)

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Card issuer survey
FR 3062
VI.C. Prepaid Card Fraud Activity and Losses

Type of fraud
1 Lost or stolen
2 Counterfeit
3 Mail order, telephone order, internet order
4 Account takeover
5 Family fraud
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Total prepaid

Number of fraudulent transactions
Chargebacks net of
Gross
representments
Recoveries
(1)
(2)
(3)

Gross
(4)

Value of fraudulent transactions
Chargebacks net of
representments
Recoveries
(5)
(6)

Net fraud losses
(7)

Percentage of net fraud losses after
representments and recoveries
Cardholders
Your institution
(%)
(%)
(8)
(9)

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Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Exclusivity arrangements
A) Is your organization currently subject to network rules, guidelines, policies, interpretations, or otherwise that restrict your
organization's ability to:

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1. Participate in multiple unaffiliated payment card networks?

2. Issue debit or prepaid cards that can operate on multiple unaffiliated payment card networks?

3. Issue debit or prepaid cards that can operate on multiple unaffiliated PIN-based payment card networks?
If "Yes," briefly describe the nature of such restrictions in the space below:

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NO

Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Exclusivity arrangements
4. Over the past 10 years, has your organization been subject to any changes in network rules, guidelines, policies,
interpretations or otherwise with respect to 1., 2., or 3. above?

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If "Yes," briefly describe the nature of such changes in the space below:

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Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Exclusivity arrangements
B) Under any of your organization's current contracts with a payment card network, does your organization agree:

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1. That any debit cards (whether signature or PIN-based) or prepaid cards issued on the payment card network are exclusively
processed on that payment card network (or an affiliated payment card network)?
2. Not to issue any other debit cards (whether signature or PIN-based) or prepaid cards that can be processed on an
unaffiliated payment card network?

3. To commit to or guarantee a certain volume or dollar threshold of transactions on that payment card network (or an
affiliated payment card network)?
If "Yes," briefly describe the nature of such contracts in the space below:

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NO

Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Exclusivity arrangements
4. Over the past 10 years, has your organization changed any contracts with a payment card network with respect to 1., 2., or
3. above?

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If "Yes," briefly describe the nature of and reasons for such changes in the space below:

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NO

Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Exclusivity arrangements
C) Does your organization receive financial or other incentives for:

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1. Being a member of a payment card network with respect to the debit or prepaid cards you issue and no other payment card
network?
2. Issuing debit cards (whether signature or PIN-based) or prepaid cards that can operate only through a single payment card
network (or on payment card networks affiliated with that payment card network)?
3. Committing to or guaranteeing a certain volume or dollar threshold of transactions on that payment card network (or an
affiliated payment card network)?
If "Yes," please mark all incentives your organization receives:
a. Higher interchange fees
b. Lower network fees

c. More favorable terms (briefly describe in the space below)
d. Other (briefly describe in the space below)

Page 15 of 18

NO

Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Exclusivity arrangements
D) Other than contractual or payment card network requirements, arrangements, or financial incentives, briefly describe any
reasons your organization may choose to issue debit or prepaid cards that exclusively operate through a single payment card
network (or affiliated payment card networks):

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Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Routing procedures
E) 1. Does your organization currently have contracts or agreements that direct or set preferences regarding how a person that
accepts debit and/or prepaid cards (or their merchant acquirer or processor) must route an electronic debit transaction when
multiple payment card networks are available to process that particular transaction?

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If "Yes," briefly describe the nature of any such directions in the space below:

2. Over the past ten years, has your organization changed any contracts or agreements with respect to 1. above?
If "Yes," briefly describe the nature of and reasons for any such changes in the space below:

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Card issuer survey
FR 3062
YES
VII. Exclusivity arrangements and routing procedures
Routing procedures
F) Over the past 10 years, has your organization reduced the number of payment card networks over which an electronic debit
card transaction may be processed for any of the types of debit or prepaid cards issued by your organization?

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If yes, briefly describe the extent or scope of the reduction and the rationale for this decision in the space below.

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NO