12 CFR § 235.3 - Reasonable and proportional interchange transaction fees.

---
identifier: "/us/cfr/t12/s235.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 235.3 - Reasonable and proportional interchange transaction fees."
title_number: 12
title_name: "Banks and Banking"
section_number: "235.3"
section_name: "Reasonable and proportional interchange transaction fees."
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "A"
subchapter_name: "BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM"
part_number: "235"
part_name: "DEBIT CARD INTERCHANGE FEES AND ROUTING (REGULATION II)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 1693o-2."
regulatory_source: "Reg. II, 76 FR 43466, July 20, 2011, unless otherwise noted."
cfr_part: "235"
---


# 235.3 Reasonable and proportional interchange transaction fees.

(a) *In general.* The amount of any interchange transaction fee that an issuer may receive or charge with respect to an electronic debit transaction shall be reasonable and proportional to the cost incurred by the issuer with respect to the electronic debit transaction.

(b) *Determination of reasonable and proportional fees.* An issuer complies with the requirements of paragraph (a) of this section only if each interchange transaction fee received or charged by the issuer for an electronic debit transaction is no more than the sum of—

(1) 21 cents and;

(2) 5 basis points multiplied by the value of the transaction.