Recordkeeping and Disclosure Requirements Associated with Regulation II

Forms and Documents

Document Name	Status
FRII_20220726_83c.pdf Justification for No Material/Nonsubstantive Change	2022-07-26

IC Document Collections

IC ID	Document Title	Status
254886	Disclosure Sections 235.4(c) and (d) Annual fraud-prevention compliance notification and change-in-status notification	New
198927	Recordkeeping Section 235.8(c) General compliance records retention	Modified
198926	Recordkeeping Section 235.4(b)(3) Review and update fraud-prevention policies and procedures	Modified
198925	Recordkeeping Sections 235.4(b)(1) and (2) Develop and implement fraud-prevention policies and procedures (one-time)	Modified

ICR Details

OMB Control No: 7100-0349	ICR Reference No: 202207-7100-004
Status: Historical Active	Previous ICR Reference No: 201907-7100-015
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: 07/26/2022
	Date Received in OIRA: 07/26/2022
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	07/31/2022	07/31/2022	07/31/2022
Responses	1,582	0	1,083
Time Burden (Hours)	22,294	0	22,341
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: 15 USC 1693o-2(a)(5) Name of Law: Electronic Fund Transfer Act
   US Code: 12 USC 601 et seq. Name of Law: Federal Reserve Act
   US Code: 15 USC 1693o(a) and 1693o-2(d) Name of Law: Electronic Fund Transfer Act
   US Code: 12 USC 1818 Name of Law: Federal Deposit Insurance Act
   US Code: 12 USC 611 et seq. Name of Law: Federal Reserve 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:
	84 FR 13919	04/08/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 34393	07/18/2019
Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Disclosure Sections 235.4(c) and (d) Annual fraud-prevention compliance notification and change-in-status notification
Recordkeeping Section 235.4(b)(3) Review and update fraud-prevention policies and procedures
Recordkeeping Section 235.8(c) General compliance records retention
Recordkeeping Sections 235.4(b)(1) and (2) Develop and implement fraud-prevention policies and procedures (one-time)

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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	1,582	1,083	0	0	499	0
Annual Time Burden (Hours)	22,294	22,341	0	0	-47	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 decrease 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? No

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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: 07/26/2022

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