On August 3rd, the Federal Reserve Board published amendments to the provisions in Regulation II (Debit Card Interchange Fees and Routing) that govern adjustments to debit card interchange transaction fees to make an allowance for fraud-prevention costs incurred by issuers. The amendments permit an issuer to receive or charge an amount of no more than 1 cent per transaction (the same amount currently permitted) in addition to its interchange transaction fee if the issuer develops and implements policies and procedures that are reasonably designed to take effective steps to reduce the occurrence of, and costs to all parties from, fraudulent electronic debit fraud-prevention aspects. The amendments require an issuer to review its policies and procedures at least annually, and update them as necessary in light of their effectiveness, cost effectiveness, and changes in the types of fraud, methods used to commit fraud, and available fraud-prevention methods. An issuer must notify its payment card networks annually that it complies with the Board's fraud-prevention standards. An issuer that is substantially noncompliant with the Board's fraud prevention standards is ineligible to receive or charge a fraud-prevention adjustment and must set forth a timeframe within which an issuer must stop receiving or charging a fraud-prevention adjustment. The amendments are effective October 1, 2012. 77 FR 46258.