Recordkeeping and Disclosure Requirements Associated with Regulation II

Forms and Documents

Document Name	Status
FRII_20190719_83c.pdf Justification for No Material/Nonsubstantive Change	2019-07-19

IC Document Collections

IC ID	Document Title	Status
198927	Disclosure Sections 235.4(c) and (d) Annual notification and change in status	Modified
198926	Recordkeeping Section 235.4(b)(3) Review and update policies and procedures	Modified
198925	Recordkeeping Section 235.4(b)(2) Implement policies and procedures (one-time)	Modified

ICR Details

OMB Control No: 7100-0349	ICR Reference No: 201907-7100-011
Status: Historical Active	Previous ICR Reference No: 201601-7100-001
Agency/Subagency: FRS	Agency Tracking No: FR II
Title: Recordkeeping and Disclosure Requirements Associated with Regulation II
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Delegated
OIRA Conclusion Action: Approved without change	Conclusion Date: 07/19/2019
	Date Received in OIRA: 07/19/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2019	08/31/2019	08/31/2019
Responses	1,083	0	277
Time Burden (Hours)	22,341	0	7,771
Cost Burden (Dollars)	0	0	0

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Abstract: Regulation II - Debit Card Interchange Fees and Routing (12 CFR Part 235) implements, among other things, standards for assessing whether interchange transaction fees for electronic debit transactions are reasonable and proportional to the cost incurred by the issuer with respect to the transaction, as required by section 920(a) of the Electronic Fund Transfer Act (EFTA) (15 U.S.C. § 1693o-2(a)). Regulation II limits the interchange transaction fee that covered issuers can charge for debit card transactions. Under the rule a covered debit card issuer is allowed to receive or charge an amount of no more than 1 cent per transaction for the costs associated with preventing fraudulent electronic debit transactions (fraud-prevention adjustment), if the issuer complies with the standards and requirements set forth in the rule. In addition, issuers must retain records demonstrating their compliance with the requirements in Regulation II for at least five years after the end of the calendar year in which the electronic debit transaction occurred, any person or issuer subject to an investigation or enforcement proceeding involving Regulation II must retain records pertaining to the matter until the final disposition of the matter, unless an earlier time is allowed by court or agency order.

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Authorizing Statute(s): US Code: 15 USC 1693o-2(a)(3) Name of Law: Electronic Fund Transfer Act
   US Code: 12 USC 1818 Name of Law: Federal Deposit Insurance Act
   US Code: 15 USC 1693o(a) and 1693o-2(d) Name of Law: Electronic Fund Transfer Act
   US Code: 12 USC 601 et seq. Name of Law: Federal Reserve Act
   US Code: 12 USC 611 et seq. Name of Law: Federal Reserve Act
   US Code: 15 USC 1693o-2(a)(5) Name of Law: Electronic Fund Transfer Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	80 FR 55360	09/15/2015
30-day Notice:	Federal Register Citation:	Citation Date:
	80 FR 76286	12/08/2015
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Recordkeeping Section 235.4(b)(2) Implement policies and procedures (one-time)
Recordkeeping Section 235.4(b)(3) Review and update policies and procedures
Disclosure Sections 235.4(c) and (d) Annual notification and change in status

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,083	277	0	0	806	0
Annual Time Burden (Hours)	22,341	7,771	0	0	14,570	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The increase in total annual burden hours reflects an update to the respondent count.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 07/19/2019

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