Fed files appeal brief in debit interchange suit
Oct. 21, 2013 – The Federal Reserve Board today urged the U.S. Court of Appeals for the District of Columbia Circuit to reject a district court ruling and uphold the Fed’s final rule on debit interchange fees and non-exclusivity requirements.
The rule, promulgated and finalized to implement the Durbin amendment in the Dodd-Frank Act, limits debit interchange fees to 21 cents per transaction plus 1 cent for fraud costs. This cap applies to debit card issuers having more than $10 billion in assets. The rule also sets prohibitions against network exclusivity that apply to all issuers. Merchants are challenging the rule, and federal district court Judge Richard Leon on July 31 declared the rule to be invalid. Leon issued a stay in September pending appeal.
NAFCU and other amici are due to file a brief today supporting the Fed’s appeal.