Network survey to PCNs

Payment Card Network Survey Instructions
FR 3062
These are instructions for the Payment Card Network (PCN) Survey (“the survey”), which has
been sent by the Board of Governors of the Federal Reserve System (“the Board”) to your
organization.
We would appreciate your participation in this important survey designed to assist the Board in
implementing new rules relating to interchange fees required under the Dodd-Frank Wall Street
Reform and Consumer Protection Act (the Act). 1 This survey will help the Board obtain
information about fees charged or set by payment card networks, fraud losses and
fraud-prevention costs, and network routing and exclusivity arrangements associated with debit
card transactions.
Section 1075 of the Act directs the Board to establish standards restricting the level of
interchange fees for certain debit card (including prepaid card) transactions to an amount that is
“reasonable and proportional” to the cost incurred by the issuer with respect to that transaction.
In addition, the Act requires the Board to issue rules that prohibit issuers and payment card
networks from requiring that a particular debit card transaction be processed on only one
payment card network and from limiting the ability of merchants to direct the routing of debit
card transactions.
As input to the development of the Board’s proposed rules, the information requested in
this survey is broad to provide the Board with a greater perspective on the debit card
industry. You should not infer, from the information requested, any particular policy
direction of the Board as it develops its proposed regulations implementing the interchange
provisions of the Act.
Your organization has also received an encrypted spreadsheet that contains the survey, as well as
a passcode (via a separate e-mail) required to open the spreadsheet. This passcode will ensure
that your response is encrypted when you return it to the Board. In order to complete the survey,
you must be running Microsoft Excel version 2007 or 2010 and must provide the passcode when
opening the spreadsheet. Please complete the survey and send it as an attachment to
Interchange.Survey@frb.gov by [insert 30 days after transmitting letter].
The survey contains seven sections and a response form, provided as separate tabs in the
spreadsheet. Please carefully read the instructions including the scope and reporting period
applicable for each section. Please complete all sections of the survey. Do not leave any cells
in the survey blank (other than unused comment fields). 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.” In cases where DK is entered, please provide an explanation in the
associated comment field. We will review the submitted surveys for logical consistency and to
identify potential inaccuracies with respect to reported items. We may contact the

1

The Act, Pub. L. 111-203, 124 Stat. 1376, was enacted on July 21, 2010.

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point-of-contact identified in your survey response if we need to confirm or revise a reported
item, or need further explanation.
In the “Response form” section in the first tab of the survey worksheet, please provide the
designated point-of-contact for your organization’s overall response. Please also include the
Unique Identifier assigned to your institution (provided in the cover letter to the survey).
If you have questions about or difficulties with the survey, including questions about the
passcode, survey encryption, or survey submission, Board staff can assist you. Please call
Jennifer Davidson at 202-452-2446 or e-mail Interchange.Survey@frb.gov for assistance.
Provide your name, organization, and contact information along with your inquiry when you call
or email. If we receive a substantial number of questions that are similar in nature, we will
address these frequently asked questions (FAQs) and post the list to the Regulatory Reform
section of the Board’s public website
(http://www.federalreserve.gov/newsevents/reform_about.htm).

Response burden and confidentiality
The Federal Reserve Board regards the individual organization information provided by each
respondent as confidential (5 U.S.C. § 552(b)(4)). The Board, however, may publish aggregate
or summary information in a way which does not reveal your individual organization’s
confidential information. If it should be determined subsequently that any information collected
on this form must be released, the respondents will be notified.
Public reporting burden for this collection of information is estimated to be 150 hours per
response, including the time to gather 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 the burden to:
Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N.W.,
Washington, D.C. 20551, or via e-mail to regs.comments@frb.gov; and to the Office of
Management and Budget, Paperwork Reduction Project (XXXX-XXXX), Washington, D.C.
20503. 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.

Section Instructions
General Definitions
•

Signature debit – Access to funds in a cardholder’s asset account for point-of-sale or other
purchase transactions through the use of a debit card, payment code, or other device, in
which the access is not authorized through the use of a PIN.

•

PIN debit – Access to funds in a cardholder’s asset account for point-of-sale or other
purchase transactions through use of a debit card, payment code, or other device, in which
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the access is authorized through the use of a PIN. Does not include cards that do not support
point-of-sale or other purchase transactions (e.g., cards that can only access ATM networks).
•

Prepaid – Access to prepaid funds held in an account that may be used for point-of-sale or
other purchase transactions through use of a prepaid card, payment code, or other device.
Include information for both reloadable and non-reloadable prepaid cards and for
government and non-government prepaid programs. For purposes of prepaid card programs
set up with an omnibus account, an account refers to each sub-account for each cardholder
and not to the omnibus account in which funds for each of the sub-accounts are kept.

•

Throughout the survey, the term “United States” refers to the States, territories, or
possessions of the United States, or any political subdivision of any of the foregoing.

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Section I. Payment Card Network Information
Reporting period: Unless instructed otherwise, report data as of year-end 2009.
Scope: Report data on transactions for cards associated with asset accounts domiciled in the
United States. Include both domestic and international transactions. Also report data related to
network reach in the United States.
Card program (column) definitions: Report data in each column for accounts and cards that
are associated with each type of card programs (signature debit, PIN debit, and prepaid). See
above for card program definitions.
Card network data (row) definitions:
•

Round values to the nearest dollar. Do not include dollar signs or commas.

I.A.1. Purchases and returns: Total transactions
The total number and value of in-scope transactions that involved a transfer of value
between a cardholder and a merchant. Include both purchase transactions in which value
was transferred from the cardholder to the merchant in exchange for goods and services
and return transactions in which value was transferred from the merchant to the
cardholder. Do not include chargebacks or any event in which value was not transferred
between a cardholder and a merchant, such as denials, errors, or authorizations that did
not clear or were not presented for settlement. For prepaid cards, do not include funds
loads to cards.
I.A.1.a. Transactions that included cash back
The number and value of transactions (from I.A.1.) in which the merchant gave
part of the point-of-sale purchase value to the cardholder as cash. Include both
the purchase and cash-back amounts in the value.
I.A.1.b. Cash-back amount
The total value of cash given by merchants to cardholders in cash-back
transactions.
I.B.1. Transaction environment: Card-present
The number and value of transactions (from I.A.1.) in which the card was physically
present at the time of purchase (in-person or automated kiosk transactions).
I.B.2. Transaction environment: Card-not-present
The number and value of transactions (from I.A.1.) in which the card was not physically
present at the time of purchase (e.g., mail order, Internet, or telephone transactions).

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I.C.1. Transaction type: Purchase
The number and value of transactions (from I.A.1.) in which value was transferred from
the cardholder to the merchant in exchange for goods or services.
I.C.2. Transaction type: Return
The number and value of transactions (from I.A.2.) initiated by the merchant in which
value was transferred from the merchant to the cardholder following a return of goods, a
refund for services, or a correction of the cardholder’s purchase amount.
I.D.1. Transaction location: Domestic
The number and value of transactions (from I.A.1.) in which the merchant was located in
the United States.
I.D.2. Transaction location: International
The number and value of transactions (from I.A.1.) in which the merchant was located
outside of the United States.
I.E.1. Merchant acceptance: Number of merchants
The number of merchants accepting payments on your network in the United States. In
the comment field, explain whether franchisees of franchise chains were reported
collectively as a single merchant or whether they were reported individually.
I.E.2. Merchant acceptance: Number of merchant locations
The number of locations at which merchants accept payments on your network in the
United States.
I.F.1. Card issuance: Number of card issuers
The number of organizations in the United States issuing cards associated with U.S.
domiciled asset accounts that can be used on your network.
I.F.2. Card issuance: Number of cards
The number of cards associated with U.S. domiciled asset accounts that can be used on
your network.
I.G.1. Network coverage: Domestic regions covered
List the regions in which your network's cards are accepted in the United States.
I.G.2. Network coverage: International regions covered
List the regions in which your network's cards are accepted outside the United States.

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Section II. 2009 Fees
Reporting period: Report data for calendar year 2009.
Scope: For each card program type (signature debit, PIN debit, and prepaid), report data on all
interchange fees, fees charged to issuers and acquirers, and incentives/discounts provided to
issuers and acquirers for transactions in the United States.
General:
• If a network was also the card issuer and acquirer such that the network had no interchange
or issuer related fees (such as in the case of American Express or Discover prepaid cards),
subsections II.A. through II.D. should be left blank. Fees charged by the network to
merchants should be reported instead in subsections II.E. through II.G.
• If a particular fee included multiple tiers, such as in the case of volume-tiered pricing, report
each tier on a separate line and label the entries accordingly. These types of tiered fees
should not be reported in sections II.D. or II.G. as discount or incentive programs.
• If a network assessed fees to entities that process transactions for issuers or acquirers (such as
processors), those fees should be reported in the applicable issuer and acquirer fee sections.
• To the extent that certain revenues were based on activity across different card products and
types, allocate those revenues to each card category (signature, PIN, prepaid) based on the
number or value of transactions, as applicable, in each category.
• The prepaid card category includes card products that may be exempt, such as cards issued
through government-administered card programs.
• Round values to the nearest dollar. Do not include dollar signs or commas.
Section II.A. Interchange fees paid to issuers and charged to acquirers
•
•
•

For each interchange fee program in 2009, provide the information described below.
Add additional rows as needed to list all fee programs under your network.
For each subcategory (i.e., signature, PIN, and prepaid), ensure that the number and value of
transactions, as well as fees charged under each program, sum to the values reported in the
total row for that subcategory.

II.A.1. Fee program name:
Provide the name of the interchange fee category.
II.A.2. Fee program description and qualification criteria:
Provide a brief description of the types of transactions to which the fee applied,
including, as applicable, the merchant type, any processing requirements, speed of
clearing/settlement, maximum fraud rates, minimum sales volume, etc.
II.A.3. and 4. Use environment:
Indicate whether the fee was applicable to a card-present environment, card-not-present
environment, or both.

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II.A.5. and 6. Effective dates:
Provide the start and end dates for the fee program. If a fee was changed during the year,
list the fees as separate line items (one for the period during which the old fee was in
effect and one for the period during which the new fee was in effect).
II.A.7. Dollar per transaction fee:
If applicable, provide the fixed-dollar component of the fee.
II.A.8. Percentage of value fee:
If applicable, provide the component of the fee that was calculated as a percentage of the
value of the transaction.
II.A.9. Dollar minimum on fee:
If applicable, provide the minimum amount that must charged under the fee program.
II.A.10. Dollar cap of fee:
If applicable, provide the maximum amount that could be charged under the fee program.
II.A.11. Number of transactions:
Provide the number of transactions on which the interchange fee was charged.
II.A.12. Total value of transactions:
Provide the value of transactions on which the interchange fee was charged.
II.A.13. Total fees provided to issuers:
Provide the total dollar amount of interchange fees provided to issuers under the fee
program.
II.A.14. Explanatory comments:
Provide any explanatory comments you believe are necessary.
Section II.B. Network fees charged to issuers that are assessed on a per-transaction basis
•
•
•

Report below information for each fee that was charged to the issuer on a per-transaction
basis by the network in 2009. Certain transactions may be assessed multiple per-transaction
fees.
Add additional rows as needed to list all transaction-related fees charged to issuers by your
network.
For each subcategory (i.e., signature, PIN, and prepaid), ensure that the fees charged to the
issuers for each fee type sum to the value reported in the total row for that subcategory.

II.B.1. Fee type:
Provide the name of the fee.
II.B.2. Fee description:
Provide a brief description of the fee.
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II.B.3. and 4. Effective dates:
Provide the start and end dates for the fee. If a fee was changed during the year, list the
fees as separate line items (one for the period during which the old fee was in effect and
one for the period during which the new fee was in effect).
II.B.5. Dollar per transaction fee:
If applicable, provide the fixed-dollar component of the fee.
II.B.6. Percentage of value fee:
If applicable, provide the component of the fee that was calculated as a percentage of the
value of the transaction.
II.B.7. Other fee:
If applicable, Provide the method used to calculate the fee, including any minimums or
maximums.
II.B.8. Number of transactions:
Provide the number of transactions on which the fee was charged.
II.B.9. Total value of transactions:
Provide the value of transactions on which the fee was charged.
II.B.10. Total transaction fees charged to issuers:
Provide the total dollar amount of fees charged to issuers under this fee type.
II.B.11. Explanatory comments:
Provide any explanatory comments you believe are necessary.
Section II.C. Network fees charged to issuers that are not assessed on a per-transaction basis
•
•
•

Report below information for each fee that was charged to the issuer by the network and was
charged on a per-transaction basis. (Note: These fees could, however, be based on
transaction volume thresholds.)
Add additional rows as needed to list all non-transaction-related fees charged to issuers by
your network.
For each subcategory (i.e., signature, PIN, and prepaid), ensure that the fees charged to the
issuers for each fee type sum to the value reported in the total row for that subcategory.

II.C.1. Fee type:
Provide the name of the fee.
II.C.2. Fee description:
Provide a brief description of the fee.

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II.C.3. Optional:
Note if the fee is for an optional service. Report “yes” or “no” in the space provided.
II.C.4. and 5. Effective dates:
Provide the start and end dates for the fee. If a fee was changed during the year, list the
fees as separate line items (one for the period during which the old fee was in effect and
one for the period during which the new fee was in effect).
II.C.6. Fee:
Provide the specific fee structure.
II.C.7. Fee calculation volume:
If applicable, provide the level of the volume used to calculate total fees charged (e.g.,
number of cards if the fee is a card-based fee, etc.).
II.C.8. Total non-transaction fees charged to issuers:
Provide the total dollar amount of fees charged to issuers under this fee type.
II.C.9. Explanatory comments:
Provide any explanatory comments you believe are necessary.
Section II.D. Other program fees paid to issuers, or discounts in fees paid by issuers (e.g.,
incentive programs, etc.) (excluding interchange fees reported in section II.A.)
•
•

•
•

Report below information for each fee that was paid to or each discount that was issued to an
issuer.
Note that tiered fee structures do not represent discounts and should be reported in the
appropriate subsections and not in subsections II.D. or II.G. For example, if a particular fee
included multiple tiers, such as in the case of volume-tiered pricing, these fees would not be
considered discount or incentive programs and should be reported elsewhere in section II.
Incentives and discounts to be reported in this section are those programs that represent
monies paid to issuers or discounts to issuers based on the achievement of certain specified
goals or targets.
Add additional rows as needed to list all program fees paid or discounted to issuers by your
network.
For each subcategory (i.e., signature, PIN, and prepaid), ensure that the fees paid or
discounted to the issuers for each fee type sum to the value reported in the total row for that
subcategory.

II.D.1. Fee or discount type:
Provide the name of the fee or discount program.
II.D.2. Fee description:
Provide a brief description of the fee paid or discount.

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II.D.3. and 4. Effective dates:
Provide the start and end dates for the fee or discount. If a fee or discount was changed
during the year, list the fees or discounts as separate line items (one for the period during
which the old fee or discount was in effect and one for the period during which the new
fee or discount was in effect).
II.D.5. Fee or discount:
Provide the specific fee or discount structure.
II.D.6. Issuers in program:
Total number of issuers that received fees or were issued discounts under the program.
II.D.7. Fee or discount volume:
If applicable, provide the level of the volume used to calculate total fees reimbursed or
discounts issued.
II.D.8. Total fees paid or discounted to issuers:
Provide the total dollar amount of fees paid or discounted to issuers under this program.
II.D.9. Explanatory comments:
Provide any explanatory comments you believe are necessary.
Section II.E. Network fees charged to acquirers or merchants that are assessed on a
per-transaction basis (excluding interchange fees reported in section II.A.)
•
•
•

Report below information for each fee that was charged to the acquirer or merchant on a
per-transaction basis. Certain transactions may be assessed multiple per-transaction fees.
Add additional rows as needed to list all transaction-related fees charged to acquirers or
merchants by your network.
For each subcategory (i.e., signature, PIN, and prepaid), ensure that the fees charged to
acquirers or merchants for each fee type sum to the value reported in the total row for that
subcategory.

II.E.1. Fee type:
Provide the name of the fee.
II.E.2. Fee description:
Provide a brief description of the fee.
II.E.3. and 4. Effective dates:
Provide the start and end dates for the fee. If a fee was changed during the year, list the
fees as separate line items (one for the period during which the old fee was in effect and
one for the period during which the new fee was in effect).
II.E.5. Dollar per transaction fee:
If applicable, provide the fixed dollar component of the fee.
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II.E.6. Percentage of value fee:
If applicable, provide the component of the fee that was calculated as a percentage of the
value of the transaction.
II.E.7. Other fee:
If applicable, provide the method used to calculate the fee, including any minimums or
maximums.
II.E.8. Number of transactions:
Provide the number of transactions on which the fee was charged.
II.E.9. Total value of transactions:
Provide the value of transactions on which the fee was charged.
II.E.10. Total fees charged to acquirers or merchants:
Provide the total dollar amount of fees charged to acquirers or merchants under this fee
type.
II.E.11. Explanatory comments:
Provide any explanatory comments you believe are necessary.
Section II.F. Network fees charged to acquirers or merchants that are not assessed on a
per-transaction basis
•
•
•

Report below information for each fee that was charged to the acquirer or merchant and was
charged on a per-transaction basis. (Note: These fees could, however, be based on
transaction volume thresholds.)
Add additional rows as needed to list all non-transaction-related fees charged to acquirers or
merchants by your network.
For each subcategory (i.e., signature, PIN, and prepaid), ensure that the fees charged to the
acquirers or merchants for each fee type sum to the value reported in the total row for that
subcategory.

II.F.1. Fee type:
Provide the name of the fee.
II.F.2. Fee description:
Provide a brief description of the fee.
II.F.3. Optional:
Note if the fee is for an optional service. Report “yes” or “no” in the space provided.
II.F.4. and 5. Effective dates:
Provide the start and end dates for the fee. If a fee was changed during the year, list the
fees as separate line items (one for the period during which the old fee was in effect and
one for the period during which the new fee was in effect).
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II.F.6. Fee:
Provide the specific fee structure.
II.F.7. Fee calculation volume:
If applicable, provide the level of the volume used to calculate total fees charged (e.g.,
number of cards if the fee is a card-based fee, etc.)
II.F.8. Total fees charged to issuers:
Provide the total dollar amount of fees charged to acquirers or merchants under this fee
type.
II.F.9. Explanatory comments:
Provide any explanatory comments you believe may be necessary.
Section II.G. Other program fees paid to acquirers or merchants by or discounts in fees paid
by acquirers or merchants (e.g., incentive programs, etc.)
•
•

•
•

Report below information for each fee that was paid to or each discount that was issued to an
acquirer or merchant.
Note that tiered fee structures do not represent discounts and should be reported in the
appropriate subsections and not in subsections II.D. or II.G. For example, if a particular fee
included multiple tiers, such as in the case of volume-tiered pricing, these fees would not be
considered discount or incentive programs and should be reported elsewhere in section II.
Incentives and discounts to be reported in this section are those programs that represent
monies paid to acquirers or merchants or discounts to acquirers or merchants based on the
achievement of certain specified goals or targets.
Add additional rows as needed to list all program fees paid or discounted to acquirers or
merchants by your network.
For each subcategory (i.e., signature, PIN, and prepaid), ensure that the fees paid or
discounted to the acquirers or merchants for each fee type sum to the value reported in the
total row for that subcategory.

II.G.1. Fee or discount type:
Provide the name of the fee or discount program.
II.G.2. Fee description:
Provide a brief description of the fee paid or discount.
II.G.3. and 4. Effective dates:
Provide the start and end dates for the fee or discount. If a fee or discount was changed
during the year, list the fees or discounts as separate line items (one for the period during
which the old fee or discount was in effect and one for the period during which the new
fee or discount was in effect).
II.G.5. Fee or discount:
Provide the specific fee or discount structure.
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II.G.6. Acquirers or merchants in program:
Total number of acquirers or merchants that received fees or were provided discounts
under the program.
II.G.7. Fee or discount volume:
If applicable, provide the level of the volume used to calculate total fees reimbursed or
discounts issued.
II.G.8. Total fees paid or discounted to acquirers or merchants:
Provide the total dollar amount of fees paid or discounted to acquirers or merchants under
this program.
II.G.9. Explanatory comments:
Provide any explanatory comments you believe are necessary.

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Section III. Historical Interchange Fees
Reporting period: Report data for the years specified.
Scope: For each card program type (signature debit, PIN debit, and prepaid), report interchange
fee data for transactions in the United States.
•

Note: If a network is also the card issuer and acquirer such that the network had no
interchange or issuer related fees (such as in the case of American Express or Discover
prepaid cards), total fees charged to merchants should be reported instead. Further, in the
explanatory comments, the network should provide the percentage of total fees reported that
was assessed on a per-transaction basis and the percentage that was not assessed on a
per-transaction basis. These percentages should total to 100 percent.

•

Round values to the nearest dollar. Do not include dollar signs or commas.

III.1. Total interchange fees reimbursed to issuers:
Provide the total dollar amount of interchange fees collected from merchants or acquirers
and reimbursed to issuers.
III.2. Total number of transactions:
Total number of transactions on which an interchange fee was assessed.
III.3. Total value of transactions:
Total value of transactions on which an interchange fee was assessed.
III.4. Average interchange fee as a percentage of total transaction value:
The average interchange assessed should be calculated by dividing total interchange fees
reimbursed to issuers as reported in III.1. by the total value of transactions as reported in
III.3.

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Section IV. Fraud Prevention and Data Security Costs
Reporting period: Report data for calendar year 2009.
Scope: For each card program type (signature debit, PIN debit, and prepaid), report data on your
fraud prevention and data security costs for transactions in the United States.
General:
• There may be some overlap associated with fraud prevention and data security activities and
respondents should avoid potential double counting of costs. For example, costs for PCI
compliance should be reported as a data security cost rather than a fraud prevention cost.
• For capital expenditures, report costs depreciated or amortized during 2009. Report the
amount of such expenditures and the depreciation/amortization approach (e.g., straight-line
over five years) in the associated comment field for a response.
• Costs related to or allocable to ATM transaction costs should not be included in costs
reported for debit card or prepaid card transactions.
• Costs shared with other card programs or activities should be allocated to each card category
based on the number of transactions or other appropriate activity-based measures.
o For example, if your organization has shared costs for signature and PIN debit
operations, allocate those costs to signature debit based on the proportion of signature
debit transactions to total debit transactions.
o If your organization has shared costs for debit card operations and other card program
operations, first allocate those costs to debit card operations based on the proportion
of debit transactions to total relevant card transactions. Then allocate the costs for
debit card operations to signature and PIN debit operations as described above.
o If you allocate shared costs, provide a description of such costs in the associated
comment field for a response. Include the activities for which costs are jointly
shared, the total amount of such costs, and the allocation method if it is not based on
the number of transactions.
• Do not allocate corporate overhead costs to card program categories (columns). Do not
allocate other overhead costs to card programs except insofar as that overhead is
directly related to activity in a card program.
• Do not double count costs across card program categories (columns).
• Do not double count costs across activity categories (rows).
• Round values to the nearest dollar. Do not include dollar signs or commas.
Section IV.A. Fraud prevention costs
IV.A.1. Type of fraud prevention activity
Fraud prevention activities include activities related to monitoring transactions to detect
and prevent fraud, as well as costs related to responding to potential fraud to prevent
further losses.

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The types of fraud prevention activities listed in the table are illustrative and not meant to
be exhaustive. If necessary, respondents should add fraud prevention activities
undertaken by their networks.
IV.A.2.and 3. and 4. Fully-allocated costs
For each card category, provide the fully-allocated costs associated with each fraud
prevention activity undertaken by the network. These costs include costs attributable to a
single card category and joint costs shared with other card categories. Joint costs should
be allocated to each card category based on the number of transactions. However, do not
allocate corporate overhead costs to card categories. Do not allocate other overhead costs
to card categories except insofar as that overhead is directly related to activity in a card
category. Do not double count costs across card categories or across fraud prevention
activities.
IV.A.5. Cost allocation methodology
As noted above, joint costs should be allocated to each card category based on the
number of transactions. If a different allocation methodology is used, explain the
methodology and provide the proportion of total costs that are joint versus direct.
Section IV.B. Data security costs
IV.B.1. Type of data security activity
Data security activities include activities related to securing the data processing and
communications infrastructure of the network.
The types of data security activities listed in the table are illustrative and not meant to be
exhaustive. If necessary, respondents should add data security activities undertaken by
their networks.
IV.B.2.and 3. and 4. Fully-allocated costs
For each card category, provide the fully-allocated costs associated with each data
security activity undertaken by the network. These costs include costs attributable to a
single card category and joint costs shared with other card categories. Joint costs should
be allocated to each card category based on the number of transactions. However, do not
allocate corporate overhead costs to card categories. Do not allocate other overhead costs
to card categories except insofar as that overhead is directly related to activity in a card
category. Do not double count costs across card categories or across data security
activities.
IV.B.5. Cost allocation methodology
As noted above, joint costs should be allocated to each card category based on the
number of transactions. If a different allocation methodology is used, explain the
methodology and provide the proportion of total costs that are joint versus direct.

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Section V. Fraud Losses
Reporting period: Report data for calendar year 2009.
Scope: For each card category (signature debit, PIN debit, and prepaid), report data for fraud
losses associated with your network’s U.S. transactions.
•
•
•
•

•

Round values to the nearest dollar. Do not include dollar signs or commas.
Percentages reported in columns (6), (7) and (8) should sum to 100 percent.
Each fraudulent transaction should be reported only once to avoid double counting.
Do not double count fraud losses across card categories (columns). For example if a
dual function PIN and signature debit card is lost and stolen and used to make a
fraudulent signature debit transaction, the incidence should be counted and valued only
once under the signature debit fraud losses.
Do not double count fraud losses across fraud types (rows).

V.1. Type of fraud:
The types of fraud that have been listed are illustrative and not meant to be exhaustive.
Respondents should add fraud types as needed.
V.2. Gross number of fraudulent transactions:
Based on data provided and available to the network, provide the gross number of
fraudulent transactions charged back through the network for each fraud type.
V.3. Net number of fraudulent transactions after representments:
Based on data provided and available to the network, provide the net number of
fraudulent transactions charged back through the network after representments for each
fraud type.
V.4. Gross value of fraudulent transactions:
Based on data provided and available to the network, provide the gross value of
fraudulent transactions charged back through the network for each fraud type.
V.5. Net value of fraudulent transactions after representments:
Based on data provided and available to the network, provide the net value of fraudulent
transactions charged back through the network after representments for each fraud type.
V.6. Percentage of net fraud loss value after representments borne by issuers and cardholders:
Based on data provided and available to the network, provide the percentage of the value
of net fraud losses after representments that were borne by issuers and cardholders for
each fraud type.
V.7. Percentage of net fraud loss value after representments borne by network:
Based on data provided and available to the network, provide the percentage of the value
of net fraud losses after representments that were borne by the network for each fraud
type.
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V.8. Percentage of net fraud loss value after representments borne by acquirers and merchants:
Based on data provided and available to the network, provide the percentage of the value
of net fraud losses after representments that were borne by acquirers and merchants for
each fraud type.

Section VI. Fraud Occurrence and Mitigation
•

For the questions in panels VI.A. – VI.H., place an “X” in the box associated with your
organization’s response. Briefly provide any necessary elaboration in the text boxes on the
form.

Section VII. Exclusivity Arrangements and Routing Procedures
•

For the questions in panels VII.A. – VII.F., place an “X” in the box associated with your
organization’s response. Briefly provide any necessary elaboration in the text boxes on the
form.

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