Reg. II FAQ - 235.6 Prohibitions– Does the net compensation test cover incentives and other payments related to exempt debit card transactions?

Compliance > Regulation II - Debit Card Interchange
Q:  Does the net compensation test cover incentives and other payments related to exempt debit card transactions?
 
A:  No. The prohibition against net compensation does not apply to issuers or electronic debit transactions that qualify for an exemption under § 235.5 from the interchange fee standards. See comment 6-1. An issuer may use any reasonable method for allocating the payments between exempt and non-exempt transactions. (Added October 24, 2011)
 
 
ADDITIONAL INFORMATION:
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: 
 

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