81 FR 52689 - Proposed Agency Information Collection Activities; Comment Request

FEDERAL RESERVE SYSTEM

Federal Register Volume 81, Issue 153 (August 9, 2016)

Page Range		52689-52690
FR Document		2016-18852

The Board of Governors of the Federal Reserve System (Board or Federal Reserve) invites comment on a proposal to revise the debit card issuer survey (FR 3064a). On June 15, 1984, the Office of Management and Budget (OMB) delegated to the Board of Governors of the Federal Reserve System (Board) its approval authority under the Paperwork Reduction Act (PRA), to approve of and assign OMB numbers to collection of information requests and requirements conducted or sponsored by the Board. Board- approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. Copies of the PRA Submission, supporting statements and approved collection of information instruments are placed into OMB's public docket files. The Federal Reserve may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a currently valid OMB number.

Federal Register, Volume 81 Issue 153 (Tuesday, August 9, 2016)

[Federal Register Volume 81, Number 153 (Tuesday, August 9, 2016)]
[Notices]
[Pages 52689-52690]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-18852]

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FEDERAL RESERVE SYSTEM

Proposed Agency Information Collection Activities; Comment
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice for comment regarding the Federal Reserve proposal to
extend with revision the clearance under the Paperwork Reduction Act
for the following information collection activity.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board or
Federal Reserve) invites comment on a proposal to revise the debit card
issuer survey (FR 3064a).
On June 15, 1984, the Office of Management and Budget (OMB)
delegated to the Board of Governors of the Federal Reserve System
(Board) its approval authority under the Paperwork Reduction Act (PRA),
to approve of and assign OMB numbers to collection of information
requests and requirements conducted or sponsored by the Board. Board-
approved collections of information are incorporated into the official
OMB inventory of currently approved collections of information. Copies
of the PRA Submission, supporting statements and approved collection of
information instruments are placed into OMB's public docket files. The
Federal Reserve may not conduct or sponsor, and the respondent is not
required to respond to, an information collection that has been
extended, revised, or implemented on or after October 1, 1995, unless
it displays a currently valid OMB number.

DATES: Comments must be submitted on or before October 11, 2016.

ADDRESSES: You may submit comments, identified by FR 3064a or FR 3064b,
by any of the following methods:
Agency Web site: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: regs.comments@federalreserve.gov. Include OMB
number in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Robert deV. Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments are available from the Board's Web site at
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper form in Room
3515, 1801 K Street (between 18th and 19th Streets NW.) Washington, DC
20006 between 9:00 a.m. and 5:00 p.m. on weekdays.
Additionally, commenters may send a copy of their comments to the
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory
Affairs, Office of Management and Budget, New Executive Office
Building, Room 10235, 725 17th Street NW., Washington, DC 20503 or by
fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission,
including the proposed reporting form and instructions, supporting
statement, and other documentation will be placed into OMB's public
docket files, once approved. These documents will also be made
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears below.
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551, (202) 452-3829. Telecommunications Device
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors
of the Federal Reserve System, Washington, DC 20551.

SUPPLEMENTARY INFORMATION:

Request for Comment on Information Collection Proposal

The following information collection, which is being handled under
this delegated authority, has received initial Board approval and is
hereby published for comment. At the end of the comment period, the
proposed information collection, along with an analysis of comments and
recommendations received, will be submitted to the Board for final
approval under OMB delegated authority. Comments are invited on the
following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Federal Reserve's functions, including
whether the information has practical utility;
b. The accuracy of the Federal Reserve's estimate of the burden of
the proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Proposal to approve under OMB delegated authority the extension for
three years, with revision, of the following report:
Report title: Interchange Transaction Fees Surveys.
Agency form number: FR 3064a (extended with revision) and FR 3064b
(extended without revision).
OMB control number: 7100-0344.
Frequency: FR 3064a--Biennial; FR 3064b--Annual.
Respondents: Issuers of debit cards (FR 3064a) and payment card
networks (FR 3064b).
Estimated annual burden hours: FR 3064a: 89,280 hours; FR 3064b:
1,275 hours.
Estimated average hours per response: FR 3064a: 160 hours; FR
3064b: 75 hours.
Number of respondents: FR 3064a: 558; FR 3064b: 17.

[[Page 52690]]

General description of report: The Wall Street Reform and Consumer
Protection Act of 2010 (Dodd-Frank Act) requires the Board to disclose,
at least every two years, such aggregate or summary information
concerning the costs incurred for, and interchange transaction fees
received by, issuers with respect to debit card transactions, as the
Board considers appropriate or in the public interest. The data from
these surveys are used in fulfilling that disclosure requirement. In
addition, the Board uses data from the payment card network survey (FR
3064b) to publicly report on an annual basis the extent to which
networks have established separate interchange fees for exempt and
covered issuers. Finally, the Board uses the data from these surveys in
determining whether to propose revisions to the interchange fee
standards in Regulation II (12 CFR part 235). The Dodd-Frank Act
provides the Board with authority to require debit card issuers and
payment card networks to submit information in order to carry out
provisions of the Dodd-Frank Act regarding interchange fee standards.
Legal authorization and confidentiality: The FR 3064a and 3064b
surveys are authorized by subsection 920(a) of the Electronic Fund
Transfer Act, which was amended by section 1075(a) of the Dodd-Frank
Act.\1\ This statutory provision requires the Board, at least once
every two years,\2\ to disclose aggregate or summary information
concerning the costs incurred and interchange transaction fees charged
or received by issuers or payment card networks in connection with the
authorization, clearance or settlement of electronic debit transaction,
as the Board considers appropriate and in the public interest.\3\ It
also provides the Board with authority to require issuers and payment
card networks to provide information to enable the Board to carry out
the provisions of the subsection.\4\ The obligation to respond to these
surveys is mandatory.
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\1\ 15 U.S.C. 1693o-2.
\2\ The subsection refers to biannual disclosures and the Board
interprets this to mean once every two years. See 76 FR 43458 (July
20, 2011).
\3\ 15 U.S.C. 1693o-2(a)(3)(B).
\4\ Id.
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In accordance with the statutory requirement, the Board will
release aggregate or summary information from the survey responses. In
addition, the Board will release, at the network level, the percentage
of total number of transactions, the percentage of total value of
transactions, and the average transaction value for exempt and not-
exempt issuers obtained on the FR 3064b. The Board has determined to
release this information both because it can already be determined
mathematically based on the information the Board currently releases on
average interchange fees and because the Board believes the release of
such information may be useful to issuers and merchants in choosing
payment card networks in which to participate and to policymakers in
assessing the effect of Regulation II on the level of interchange fees
received by issuers over time.
However, the remaining individual issuer and payment card
information collected on these surveys can be kept confidential under
exemption (b)(4) of the Freedom of Information Act (FOIA) because staff
has advised that, if released, this information would cause substantial
harm to the competitive position of the survey respondents.\5\
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\5\ 5 U.S.C. 552(b)(4) (exempting from disclosure ``trade
secrets and commercial or financial information obtained from a
person and privileged or confidential'').
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Current Actions: The Board proposes to revise the debit card issuer
survey (FR 3064a) by deleting questions in which respondents are asked
to allocate their costs between fixed costs and variable costs. In
addition, the Board proposes to alter the timing of the survey such
that, for each data collection, the survey be made available to
respondents in mid-January with a filing deadline in mid-April.\6\ This
allows respondents a full 90 days to respond to the surveys.
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\6\ The Board will provide respondents with secure online access
to respond to the debit card issuer and payment card network
surveys.
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Proposed Revisions to FR 3064a

I. Information for all Debit Card Transactions (including general-
use prepaid card transactions): The Board proposes to delete questions
3e and 3f, which break out the fixed and variable cost components for
line items 3b.1 In-house costs and 3b.2 Third-party processing fees,
respectively.
II. Information for Single-Message (PIN) Debit Card Transactions
(excluding general-use prepaid card transactions): The Board proposes
to delete questions 3e and 3f, which break out the fixed and variable
cost components for line items 3b.1 In-house costs and 3b.2 Third-party
processing fees, respectively.
III. Information for Dual-Message (Signature) Debit Card
Transactions (excluding general-use prepaid card transactions): The
Board proposes to delete questions 3e and 3f, which break out the fixed
and variable cost components for line items 3b.1 In-house costs and
3b.2 Third-party processing fees, respectively.
IV. Information for General-Use Prepaid Card Transactions: The
Board proposes to delete questions 3e and 3f, which break out the fixed
and variable cost components for line items 3b.1 In-house costs and
3b.2 Third-party processing fees, respectively.
Definitions for variable and fixed costs would remain in the
instructions.\7\ The break out of variable and fixed costs was
originally included so as to enable the Board to respond to possible
outcomes of pending litigation regarding Regulation II. This litigation
has been resolved.
The Board also proposes to make several clarifications throughout
both surveys.

Board of Governors of the Federal Reserve System, August 4,
2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-18852 Filed 8-8-16; 8:45 am]
BILLING CODE 6210-01-P

Federal Register / Vol. 81, No. 153 / Tuesday, August 9, 2016 / Notices 52689

a nonbanking company, the review also files. The Federal Reserve may not Governors of the Federal Reserve
includes whether the acquisition of the conduct or sponsor, and the respondent System, Washington, DC 20551, (202)
nonbanking company complies with the is not required to respond to, an 452–3829. Telecommunications Device
standards in section 4 of the BHC Act information collection that has been for the Deaf (TDD) users may contact
(12 U.S.C. 1843). Unless otherwise extended, revised, or implemented on or (202) 263–4869, Board of Governors of
noted, nonbanking activities will be after October 1, 1995, unless it displays the Federal Reserve System,
conducted throughout the United States. a currently valid OMB number. Washington, DC 20551.
Unless otherwise noted, comments DATES: Comments must be submitted on SUPPLEMENTARY INFORMATION:
regarding each of these applications or before October 11, 2016.
must be received at the Reserve Bank Request for Comment on Information
ADDRESSES: You may submit comments,
indicated or the offices of the Board of Collection Proposal
identified by FR 3064a or FR 3064b, by
Governors not later than September 2, any of the following methods: The following information collection,
2016. • Agency Web site: http:// which is being handled under this
A. Federal Reserve Bank of www.federalreserve.gov. Follow the delegated authority, has received initial
Minneapolis (Jacquelyn K. Brunmeier, instructions for submitting comments at Board approval and is hereby published
Assistant Vice President) 90 Hennepin http://www.federalreserve.gov/apps/ for comment. At the end of the comment
Avenue, Minneapolis, Minnesota foia/proposedregs.aspx. period, the proposed information
55480–0291: • Federal eRulemaking Portal: http:// collection, along with an analysis of
1. Northern Interstate Financial, Inc., comments and recommendations
www.regulations.gov. Follow the
Norway, Michigan; to merge with C.F.C. received, will be submitted to the Board
instructions for submitting comments.
Bancorp, Inc., Crystal Falls, Michigan, • Email: regs.comments@ for final approval under OMB delegated
and thereby indirectly acquire First federalreserve.gov. Include OMB authority. Comments are invited on the
National Bank of Crystal Falls, both of number in the subject line of the following:
Crystal Falls, Michigan. message. a. Whether the proposed collection of
Board of Governors of the Federal Reserve • FAX: (202) 452–3819 or (202) 452– information is necessary for the proper
System, August 4, 2016. 3102. performance of the Federal Reserve’s
Michele T. Fennell, • Mail: Robert deV. Frierson, functions, including whether the
Assistant Secretary of the Board. Secretary, Board of Governors of the information has practical utility;
[FR Doc. 2016–18858 Filed 8–8–16; 8:45 am] Federal Reserve System, 20th Street and b. The accuracy of the Federal
BILLING CODE 6210–01–P Constitution Avenue NW., Washington, Reserve’s estimate of the burden of the
DC 20551. proposed information collection,
All public comments are available including the validity of the
FEDERAL RESERVE SYSTEM from the Board’s Web site at http:// methodology and assumptions used;
www.federalreserve.gov/apps/foia/ c. Ways to enhance the quality,
Proposed Agency Information proposedregs.aspx as submitted, unless utility, and clarity of the information to
Collection Activities; Comment modified for technical reasons. be collected;
Request Accordingly, your comments will not be d. Ways to minimize the burden of
AGENCY: Board of Governors of the edited to remove any identifying or information collection on respondents,
Federal Reserve System. contact information. Public comments including through the use of automated
may also be viewed electronically or in collection techniques or other forms of
ACTION: Notice for comment regarding
paper form in Room 3515, 1801 K Street information technology; and
the Federal Reserve proposal to extend
(between 18th and 19th Streets NW.) e. Estimates of capital or start-up costs
with revision the clearance under the
Washington, DC 20006 between 9:00 and costs of operation, maintenance,
Paperwork Reduction Act for the
a.m. and 5:00 p.m. on weekdays. and purchase of services to provide
following information collection Additionally, commenters may send a information.
activity. copy of their comments to the OMB Proposal to approve under OMB
SUMMARY: The Board of Governors of the Desk Officer—Shagufta Ahmed—Office delegated authority the extension for
Federal Reserve System (Board or of Information and Regulatory Affairs, three years, with revision, of the
Federal Reserve) invites comment on a Office of Management and Budget, New following report:
proposal to revise the debit card issuer Executive Office Building, Room 10235, Report title: Interchange Transaction
survey (FR 3064a). 725 17th Street NW., Washington, DC Fees Surveys.
On June 15, 1984, the Office of 20503 or by fax to (202) 395–6974. Agency form number: FR 3064a
Management and Budget (OMB) FOR FURTHER INFORMATION CONTACT: A (extended with revision) and FR 3064b
delegated to the Board of Governors of copy of the PRA OMB submission, (extended without revision).
the Federal Reserve System (Board) its including the proposed reporting form OMB control number: 7100–0344.
approval authority under the Paperwork and instructions, supporting statement, Frequency: FR 3064a—Biennial; FR
Reduction Act (PRA), to approve of and and other documentation will be placed 3064b—Annual.
assign OMB numbers to collection of into OMB’s public docket files, once Respondents: Issuers of debit cards
information requests and requirements approved. These documents will also be (FR 3064a) and payment card networks
conducted or sponsored by the Board. made available on the Federal Reserve (FR 3064b).
asabaliauskas on DSK3SPTVN1PROD with NOTICES

Board-approved collections of Board’s public Web site at: http:// Estimated annual burden hours: FR
information are incorporated into the www.federalreserve.gov/apps/ 3064a: 89,280 hours; FR 3064b: 1,275
official OMB inventory of currently reportforms/review.aspx or may be hours.
approved collections of information. requested from the agency clearance Estimated average hours per response:
Copies of the PRA Submission, officer, whose name appears below. FR 3064a: 160 hours; FR 3064b: 75
supporting statements and approved Federal Reserve Board Clearance hours.
collection of information instruments Officer—Nuha Elmaghrabi—Office of Number of respondents: FR 3064a:
are placed into OMB’s public docket the Chief Data Officer, Board of 558; FR 3064b: 17.

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52690 Federal Register / Vol. 81, No. 153 / Tuesday, August 9, 2016 / Notices

General description of report: The exempt issuers obtained on the FR components for line items 3b.1 In-house
Wall Street Reform and Consumer 3064b. The Board has determined to costs and 3b.2 Third-party processing
Protection Act of 2010 (Dodd-Frank Act) release this information both because it fees, respectively.
requires the Board to disclose, at least can already be determined IV. Information for General-Use
every two years, such aggregate or mathematically based on the Prepaid Card Transactions: The Board
summary information concerning the information the Board currently releases proposes to delete questions 3e and 3f,
costs incurred for, and interchange on average interchange fees and because which break out the fixed and variable
transaction fees received by, issuers the Board believes the release of such cost components for line items 3b.1 In-
with respect to debit card transactions, information may be useful to issuers house costs and 3b.2 Third-party
as the Board considers appropriate or in and merchants in choosing payment processing fees, respectively.
the public interest. The data from these card networks in which to participate Definitions for variable and fixed
surveys are used in fulfilling that and to policymakers in assessing the costs would remain in the instructions.7
disclosure requirement. In addition, the effect of Regulation II on the level of The break out of variable and fixed costs
Board uses data from the payment card interchange fees received by issuers was originally included so as to enable
network survey (FR 3064b) to publicly over time. the Board to respond to possible
report on an annual basis the extent to However, the remaining individual outcomes of pending litigation regarding
which networks have established issuer and payment card information Regulation II. This litigation has been
separate interchange fees for exempt collected on these surveys can be kept resolved.
and covered issuers. Finally, the Board confidential under exemption (b)(4) of The Board also proposes to make
uses the data from these surveys in the Freedom of Information Act (FOIA) several clarifications throughout both
determining whether to propose because staff has advised that, if surveys.
revisions to the interchange fee released, this information would cause Board of Governors of the Federal Reserve
standards in Regulation II (12 CFR part substantial harm to the competitive System, August 4, 2016.
235). The Dodd-Frank Act provides the position of the survey respondents.5 Robert deV. Frierson,
Board with authority to require debit Current Actions: The Board proposes Secretary of the Board.
card issuers and payment card networks to revise the debit card issuer survey [FR Doc. 2016–18852 Filed 8–8–16; 8:45 am]
to submit information in order to carry (FR 3064a) by deleting questions in BILLING CODE 6210–01–P
out provisions of the Dodd-Frank Act which respondents are asked to allocate
regarding interchange fee standards. their costs between fixed costs and
Legal authorization and variable costs. In addition, the Board FEDERAL RESERVE SYSTEM
confidentiality: The FR 3064a and 3064b proposes to alter the timing of the
surveys are authorized by subsection survey such that, for each data Formations of, Acquisitions by, and
920(a) of the Electronic Fund Transfer collection, the survey be made available Mergers of Bank Holding Companies
Act, which was amended by section to respondents in mid-January with a
filing deadline in mid-April.6 This The companies listed in this notice
1075(a) of the Dodd-Frank Act.1 This have applied to the Board for approval,
statutory provision requires the Board, allows respondents a full 90 days to
respond to the surveys. pursuant to the Bank Holding Company
at least once every two years,2 to Act of 1956 (12 U.S.C. 1841 et seq.)
disclose aggregate or summary Proposed Revisions to FR 3064a (BHC Act), Regulation Y (12 CFR part
information concerning the costs 225), and all other applicable statutes
I. Information for all Debit Card
incurred and interchange transaction and regulations to become a bank
Transactions (including general-use
fees charged or received by issuers or holding company and/or to acquire the
prepaid card transactions): The Board
payment card networks in connection assets or the ownership of, control of, or
proposes to delete questions 3e and 3f,
with the authorization, clearance or the power to vote shares of a bank or
which break out the fixed and variable
settlement of electronic debit bank holding company and all of the
cost components for line items 3b.1 In-
transaction, as the Board considers banks and nonbanking companies
house costs and 3b.2 Third-party
appropriate and in the public interest.3 owned by the bank holding company,
processing fees, respectively.
It also provides the Board with authority II. Information for Single-Message including the companies listed below.
to require issuers and payment card (PIN) Debit Card Transactions The applications listed below, as well
networks to provide information to (excluding general-use prepaid card as other related filings required by the
enable the Board to carry out the transactions): The Board proposes to Board, are available for immediate
provisions of the subsection.4 The delete questions 3e and 3f, which break inspection at the Federal Reserve Bank
obligation to respond to these surveys is out the fixed and variable cost indicated. The applications will also be
mandatory. components for line items 3b.1 In-house available for inspection at the offices of
In accordance with the statutory costs and 3b.2 Third-party processing the Board of Governors. Interested
requirement, the Board will release fees, respectively. persons may express their views in
aggregate or summary information from III. Information for Dual-Message writing on the standards enumerated in
the survey responses. In addition, the (Signature) Debit Card Transactions the BHC Act (12 U.S.C. 1842(c)). If the
Board will release, at the network level, (excluding general-use prepaid card proposal also involves the acquisition of
the percentage of total number of transactions): The Board proposes to a nonbanking company, the review also
transactions, the percentage of total includes whether the acquisition of the
asabaliauskas on DSK3SPTVN1PROD with NOTICES

delete questions 3e and 3f, which break
value of transactions, and the average out the fixed and variable cost nonbanking company complies with the
transaction value for exempt and not- standards in section 4 of the BHC Act
1 15
5 5 U.S.C. 552(b)(4) (exempting from disclosure (12 U.S.C. 1843). Unless otherwise
U.S.C. 1693o–2. ‘‘trade secrets and commercial or financial
2 The
noted, nonbanking activities will be
subsection refers to biannual disclosures information obtained from a person and privileged
and the Board interprets this to mean once every or confidential’’).
conducted throughout the United States.
two years. See 76 FR 43458 (July 20, 2011). 6 The Board will provide respondents with secure Unless otherwise noted, comments
3 15 U.S.C. 1693o–2(a)(3)(B).
online access to respond to the debit card issuer regarding each of these applications
4 Id. and payment card network surveys. must be received at the Reserve Bank

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Document Created: 2016-08-09 01:10:21
Document Modified: 2016-08-09 01:10:21

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice for comment regarding the Federal Reserve proposal to extend with revision the clearance under the Paperwork Reduction Act for the following information collection activity.
Dates		Comments must be submitted on or before October 11, 2016.
Contact		A copy of the PRA OMB submission, including the proposed reporting form and instructions, supporting statement, and other documentation will be placed into OMB's public docket files, once approved. These documents will also be made available on the Federal Reserve Board's public Web site at: http:// www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance officer, whose name appears below.
FR Citation		81 FR 52689