The neverending battle between merchants and banks and the Federal Reserve over debit-card fees is set to enter its next chapter as the retailers take their case to the Supreme Court. The merchants argue that the Fed allows debit-card fees, which are assessed every time a card is swiped, in excess of the requirements of the Dodd-Frank Act.
Representatives of the National Association of Convenience Stores and the National Retail Federation confirmed yesterday that the groups will petition the court of last resort to review the case, reports The Wall Street Journal. The groups suffered a setback in March when a federal appeals court rejected their argument, instead ruling that the Fed adopted reasonable rules for the fees.
“These fees are so large and pervasive and have such a profound impact on the economy,” said Douglas Kantor, a lawyer representing retailers, reports The Journal. “It’s that combination of things that to us says the Supreme Court really needs to hear this.”
The loss if federal appeals courts followed a district court decision in the merchants’ favor. The retail groups have until June 19 to petition the highcourt, and on Monday they asked the court to extend that deadline until July 21. Neither the Fed nor the Consumer Bankers Association had any comment on the decision.
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