Home / Knowledge / News / Apparel/Garments / NRF goes in appeal against higher debit card swipe fee cap
NRF goes in appeal against higher debit card swipe fee cap
18
Jan '14
The National Retail Federation asked an appeals court to uphold a judge’s ruling that the Federal Reserve set its cap on debit card swipe fees far higher than intended by Congress and that the cap needs to be recalculated at a lower level.

“Nearly four years after the law was passed, debit swipe fees are still far higher than they should be, and banks are raking in billions of dollars in unearned profits every year as a result,” NRF Senior Vice President and General Counsel Mallory Duncan said.

“Instead of doing what Congress ordered, the Fed gave in to pressure from big banks – and retailers and their customers are paying the price. It’s time for the Fed to follow the law instead of catering to the industry it is supposed to regulate.”

A three-judge panel of the U.S. Circuit Court of Appeals is scheduled to hold a hearing in Washington this morning on the Fed’s challenge of U.S. District Court Judge Richard Leon’s July ruling that the 21-cent cap that took effect in 2011 was too high. The ruling came in a lawsuit brought by NRF and other groups.

Under the Durbin Amendment section of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Fed was required to adopt regulations that would reduce debit card swipe fees from an average 45 cents per transaction to a “reasonable” level “proportional” to banks’ cost for processing the transactions.

The law allowed the Fed to consider the incremental costs of acquiring, clearing and settling each transaction but prohibited any other expenses from being included. The Fed estimated those costs at an average 4 cents and initially proposed a cap no higher than 12 cents, but eventually set the figure at 21 cents after heavy lobbying by banks. The NRF lawsuit claims the higher level includes costs that were barred by Congress.

A 2013 study found the current cap is saving merchants $8.5 billion a year, with more than two-thirds passed along to consumers, but that $12.5 billion could have been saved under a 12-cent cap.

Leon’s July ruling also agreed with NRF that the Fed’s regulations failed to comply with a congressional requirement that at least two competing processing networks be available for each transaction regardless of whether consumers choose “credit” or “debit” when using a debit card. The requirement was intended to lower costs by increasing competition.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans.

National Retail Federation

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search