June 29, 2011
A federal appeals court Wednesday in Sioux Falls, South Dakota, upheld a preliminary injunction Federal Reserve, denying TCF Financial Corp.’s move to block new debit interchange fees from being implemented later this month, according to the Wall Street Journal.
The decision is “effectively killing the banking industry’s last chance to prevent the retail-friendly regulations from going into effect,” reports the newspaper.
TCF Financial had filed an injunction with the Eighth Circuit District Court of Appeals in St. Louis as the company believes the Durbin Amendment is unconstitutional.
Today the Federal Reserve Board issued the final version of Regulation II, which sets new rules for debit card transactions. The Final Rule sets a cap of 21 cents on transactions that fall within its scope (plus 5 basis points on the transaction value) and requires issuers to place two unaffiliated marks, on every debit card. But the final rule does not answer every question that had been raised in or about the original draft, and it does not account for many of the concerns raised in the public comments. Here are the highlights.
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