The T&T quartet of Aaron Wilson, Luc O’Young, Joshua Maxwell and Brittany Joseph all failed to make it past the group stages of their respective junior singles groups when the inaugural Pan...
You are here
Appeals court upholds Fed’s debit card cap
A federal appeals court has today handed down a ruling in a back-and-forth drama that grew out of the 2010 Dodd-Frank Consumer Protection and Wall Street Reform Act. The ruling finds in favor of the Federal Reserve’s 2011 compromise, in which a 21-cent limit was put on debit swipe fees. That was down considerably from what had been the previous average of 44 cents per transaction.
The National Retail Federation, which has been deeply involved in this battle all along, immediately announced a statement, echoing its disappointment.
“NRF is disappointed and remains confident that the Federal Reserve erred when it set the swipe fee cap far higher than intended by Congress,” NRF Senior Vice President and General Counsel Mallory Duncan said. “The Fed ignored congressional intent and worked to shield debit card companies and big banks. A self-described victory for the banks usually results in higher costs for consumers.”
As a result of the Durbin Amendment provisions of Dodd-Frank, the Fed adopted rules that specified “reasonable and proportional” fees, based on actual costs involved. The Fed calculated the actual average cost at four cents per transaction and initially proposed a cap no higher than 12 cents, but eventually settled on 21 cents after what NRF calls “heavy lobbying from the financial services industry.”
NRF appealed in 2011 and Judge Richard Leon ruled in NRF’s favour, and told the Fed to go back to the drawing board and do the calculations again.
User comments posted on this website are the sole views and opinions of the comment writer and are not representative of Guardian Media Limited or its staff.
Guardian Media Limited accepts no liability and will not be held accountable for user comments.
Guardian Media Limited reserves the right to remove, to edit or to censor any comments.
Any content which is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will be removed.