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WASHINGTON — The Supreme Court on Tuesday declined to hear a challenge to the debit card processing fee cap of 21 cents established by the Federal Reserve.
The Supreme Court on Tuesday declined to hear a challenge to the debit card processing fee cap of 21 cents established by the Federal Reserve.
The high court’s decision means that a March 2014 ruling by the U.S. Court of Appeals, supporting the current swipe fee rules, stands.
The National Retail Federation expressed disappointment in the decision. The NRF and other retail groups have contended that by setting the fee cap at 21 cents, rather than the originally considered 12 cents, the Federal Reserve had violated its mandate under the Dodd-Frank Consumer Protection and Wall Street Reform Act of 2010, which called for "reasonable and proportional" fees.
"The court’s decision is disappointing because it leaves merchants and their customers paying far more than intended by Congress," NRF senior vice president and general counsel Mallory Duncan said. "Federal agencies have flexibility in implementing our nation’s laws, but do not have the discretion to blatantly ignore the wishes of elected officials and the clear language of the statute. The court’s ruling means retailers will keep paying billions of dollars more than they should, and that fee-hungry banks will continue to rake in unearned profits that ultimately come out of consumers’ pockets. We will continue to press the issue."
"Banks will benefit from this ruling, but the battle over swipe fees isn’t over," Duncan said. "There is still litigation pending on credit card swipe fees, and policy makers continue to be concerned by the anticonsumer and anticompetitive practices of the card industry."
