“We applaud the ruling and urge the Federal Reserve Board of Governors to move quickly to establish a new regulated debit rate that reflects Congress’s intent, along with a process for regular updates,” said FMI CEO Sarasin.
RILA joined NRF in objecting to a proposed settlement in the long-running credit card swipe fee litigation.
The rule “creates significant competition concerns” and “raises substantial antitrust concerns” by allowing third parties to establish fees on behalf of otherwise-competing federal credit unions, MPC said.
RILA said retailers remain burdened by “excessive and ever-increasing” swipe fees and contended that the settlement provides no meaningful relief for merchants.
NRF stated the proposed agreement doesn't address retailers' concerns about limited competition in payments and fails to curb rising transaction costs.
U.S. District Judge Brian Cogan on Tuesday gave preliminary approval to the proposal
Illinois developments occur as Colorado's legislation to ban swipe fees on sales tax awaits Gov. Jared Polis's signature. Similar bills have advanced in Pennsylvania and Delaware this spring.
Agreement ends class-action lawsuit dating to 2005.
Merchants paid a record $236.4 billion in card swipe fees last year. Retailers warn that these costs, now second only to labor, are increasing consumer prices.
