Retailers Big Winners in Court’s Swipe Fee Ruling

Retailers Big Winners in Court’s Swipe Fee Ruling

July 31, 2013         Written By John H. Oldshue

A federal judge today ruled against a 2011 Federal Reserve rule on fees charged for debit-card transactions. The judge sided with retailers’ arguments that the Fed was too lenient on banks when it capped the fees in October of 2011.

This has been an ongoing battle between banks and retailers over how much banks charge retailers when consumers swipe their debit cards.

U.S. District Judge Richard Leon said the Fed rule “runs completely afoul of the text, design and purpose” of a Dodd-Frank amendment to limit the fees. He delayed immediate enforcement of the ruling and set a court hearing on August 14 to determine what should happen next.

In 2010, the Federal Reserve capped debit swipe fees for non-exempt institutions at roughly 24 cents. The rule went into effect in October 2011. Retailers argued that the Fed rule hasn’t led to fair rates, and banks argued the rule has crimped profits.



The information contained within this article was accurate as of July 31, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus