Retailers Successfully Challenge Fed’s Debit Card Interchange Fee Rule
August 12, 2013
The federal District Court for the District of Columbia struck down two key portions of the Federal Reserve Board’s final rule implementing the Durbin Amendment. Dissatisfied with the Board’s 21 cents plus 5 basis points cap as well as its handling of the Durbin Amendment’s multiple networks mandate, a coalition of retailers was able to convince a federal judge that the Board’s rule was arbitrary, capricious, and an abuse of discretion and thus not entitled to judicial deference. The court vacated the rule and ordered the Board to rewrite the two portions.
Pending a hearing this week, the court is allowing the rule to remain in effect until the Board completes its revision. Please see CBA’s Regulatory Compliance Bulletin for more information.