June 01, 2014

Merchants eye Supreme Court review of debit rule

June 2, 2014 – Merchants on Friday requested another 30 days to file a petition for Supreme Court review of the debit interchange case they lost this March to the Federal Reserve Board.

A federal appeals court, overturning a lower court rulings, decided March 21 to uphold the Federal Reserve's debit interchange rule. The merchant coalition was given until June 19 to file a petition for writ of certiorari to seek review by the Supreme Court. If its request for another 30 days is granted, the group will have until July 21 to file.

NAFCU continues to closely watch developments from this case.

NAFCU hailed the appeals court ruling as a win for credit unions. However, it still views the Fed's debit interchange fee cap as too low and continues to advocate on behalf of its members for preserving credit union interchange fee income.

The current rule sets a cap on charges to retailers at 21 cents per debit card transaction, not enough to provide a reasonable return.