Q: Do payments made by a network to an issuer to compensate an issuer for banking services provided by the issuer to the network count for purposes of determining whether an issuer has received net compensation?
A: No. If an issuer acts as the network's bank, payments made by a payment card network to an issuer for banking services (e.g., transaction account services) provided to the network are not considered compensation for purposes of determining whether an issuer has received net compensation from a payment card network. Such payments relate to the issuer's role as the network's bank rather than to debit card-related services provided by the issuer. (Added September 14, 2011)
This Q&A was obtained from FRB’s website, in a section for Regulation II (Debit Card Interchange Fees and Routing) Frequently Asked Questions, which may be found here: