Retailers sue Fed over interchange fee cap
Two retail trade organizations filed a lawsuit against the Federal Reserve Board of Governors this week over the interchange fee cap set forth in the Durbin Amendment, part of the Dodd-Frank Act. The Durbin Amendment caps interchange fees charged to retailers for use of debit cards.
The North Dakota Retail Association and the North Dakota Petroleum Marketers Association’s lawsuit seeks to lower the interchange fee cap.
Retailers have sued the Federal reserve over this issue in the past. The national retail trade organization sued the Federal Reserve in federal court in 2011 over original Durbin regulations, claiming that the allowed 21 cents per transaction interchange exceeded the “reasonable” level intended by Congress. A trial judge agreed with the retailers but the decision was overturned on appeal
s in 2014.
CUNA supports a full repeal of the Durbin Amendment, and has supported legislation to this effect.