US: Sen. Durbin, retailers ask SCOTUS to overrule interchange fee cap

Senator Richard Durbin (D-IL), along with retail giants Wal-Mart, 7-Eleven and others, have reportedly filed several briefs with the US Supreme Court as they seek to alter the Federal Reserve’s cap on debit card interchange fees, which they say is too high.

According to reports, the retailers and the Senator, who penned the Durbin Amendment, argue that the swipe-fee caps, which took effect three years ago, are higher than intended when Congress passed the Dodd-Frank Consumer Protection and Wall Street Reform Act in 2010.

Wal-Mart and 7-Eleven reportedly filed individual amicus briefs, arguing that the Fed misinterpreted the language of the legislation. The retailers are now seeking SCOTUS to lower the cap.

Both retailers were two of several that opted out of a record $7 billion settlement offered by Visa and MasterCard to end litigation against the companies for allegedly harming competition through the interchange fees charged to stores when their cards are used.

The companies that opted out of the deal were granted approval in July to proceed with new litigation against the credit card companies.

Full content: Credit Union Times

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