U.S. Court of Appeals for the Eighth Circuit upholds ruling overturning the Federal Reserve’s cap on debit card interchange fees
Fed’s Debit Card Swipe Fee Rule Quashed By Appeals Court
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The U.S. Court of Appeals for the Eighth Circuit upheld a lower court ruling overturning the Federal Reserve’s cap on debit card interchange fees and ordered the Fed to set fee standards within the bounds of the law. The dispute concerns which costs the Durbin Amendment allows to be included in interchange fees; merchant groups argue that current rates allow banks to charge too much, while credit unions say debit transaction infrastructure, fraud monitoring, and network connectivity also require ongoing investment.
The ruling requires the Federal Reserve to set debit card interchange fee standards within the bounds of the law. The differing views of merchants and credit unions on the impact of the rates also show the competing interests involved in adjusting the rules.
Source:PYMNTS · pymnts.com