Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 63

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 5
Chunk 63
---
RA 
regulations and respond to changes in the
banking industry. Among other
items, the final rule introduces new tests
under which the 
performance of banks will
be assessed and includes
data collection and reporting requirements,
many of which are
applicable only 
to banks with over $10 billion in assets, such as
BPPR and PB. The effective date of the final rule was
April 1, 2024; however, banks 
are not
required to begin
complying with certain
provisions of the
final rule
until January 1,
2026, with data
reporting requirements 
becoming
applicable
on
January
1,
2027.
The
final
rule
has
been
challenged
in
federal
court
and
is
currently
stayed
as
to
the 
plaintiff trade associations while the court considers the
validity of the rule. 
Interchange Fees Regulation
The Federal Reserve Board
has established standards for
debit card interchange fees
and prohibited network exclusivity 
arrangements and routing restrictions. The
maximum permissible interchange fee that
an issuer may receive
for an electronic debit 
transaction is
the sum
of
21 cents
per transaction
and 5
basis points
multiplied by
the value
of
the transaction.
Additionally,
the 
Federal Reserve
Board allows
for an
upward adjustment
of
no more
than 1
cent
to
an issuer’s
debit card
interchange fee
if the 
issuer develops and implements policies and procedures
reasonably designed to achieve certain fraud-prevention
standards. 
In
October
2023,
the
Federal
Reserve
Board
proposed
amendments
to
its
rules
on
interchange
fees.
The
proposed 
changes would establish a
maximum permissible interchange fee of
no more than
14.4 cents per transaction
plus four basis points 
multiplied by
the value
of the
transaction. The
fraud prevention
adjustment would
be increased
to 1.3
cents per
transaction. The 
proposed rule would also establish an automatic update of the interchange fee cap every other year based on a survey of debit card 
issuers. 
Consumer Financial Protection Act of 2010
The Consumer
Financial Protection
Bureau (the
“CFPB”) supervises