GS Logo
The Green Sheet, Inc

Please Log in

A Thing
View Archives

View flipbook of this issue

Care to Share?


Table of Contents

Lead Story

Encryption - the secure payment adoption challenge

News

Industry Update

High court rebuffs merchant challenge to debit interchange

MasterCard leads way for U.S. card acceptance in Cuba

NRF show celebrates innovation, spots trends

Girl Scouts stage Digital Cookie 'bake-off'

Features

Hotel industry technology grab

Rebranding risks and rewards

Shopping sessions heat up on mobile

Views

Washington becomes a prepaid buzz kill

Patti Murphy
ProScribes Inc.

2015 Payments industry trends

Mark Flamme and Kevin Grieve
Strategy&

Education

Street SmartsSM:
Emails: Selling through rain, sleet or snow

Tom Waters and Ben Abel
Bank Associates Merchant Services

Merchant contract transparency should be the norm

Alex Nouri
EFT Direct

New tools for a new era

Jeff Fortney
Clearent LLC

You're the coach, what's your game plan?

Adam Moss
CardConnect

Company Profile

Humboldt Merchant Services

New Products

QuickBooks payments, lightning speed

Lightning for QuickBooks
TouchSuite

Web security services designed for SMBs

Web Security Services
ControlScan Inc.

Inspiration

Gaming work

Departments

Readers Speak

GS 10 Years Ago

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

February 09, 2015  •  Issue 15:02:01

previous next

High court rebuffs merchant challenge to debit interchange

Efforts by the nation's retailers to force down debit card interchange was dealt another blow recently when the U.S. Supreme Court declined to review a 2014 appellate court ruling that let stand rate caps set by the Federal Reserve Board under the Durbin Amendment to the 2010 Dodd-Frank Act.

Undeterred, retailers vowed to continue pressing for mandated lower interchange. Banks, for their part, have countered that enough is enough.

The Fed has been on the hot seat since it first took up the mission of capping debit card interchange as directed by Congress, with retailers pressing for bigger cuts and banks seeing it as a windfall for retailers, especially big-box retailers like Wal-Mart Stores Inc.

Retailers vow to persist

In July 2013, a group led by the National Retail Federation, the National Association of Convenience Stores and several individual retailers successfully challenged the $0.21 per transaction cap set by the Fed in U.S. district court, but that decision was overturned in March 2014 by the U.S. Court of Appeals for the District of Columbia. The Supreme Court's decision not to review the appeals court decision means the 2014 decision stands.

The expected response from retailers was swift. "Banks will benefit from this ruling, but the battle over swipe fees isn't over," said Mallory Duncan, NRF Senior Vice President and General Counsel. "There is still litigation pending on credit card swipe fees, and policymakers continue to be concerned by the anti-consumer, anti-competitive practices of the card industry."

Bankers are relieved

Banking groups said they were pleased with the decision. They also insisted that the underlying policy remains flawed, is bad for consumers and that Congress should not be in the business of setting bank fees.

"The Durbin Amendment has significantly harmed consumers and financial institutions," said Frank Keating, President and Chief Executive Officer of the American Bankers Association. "At the end of the day, American consumers have paid the price for the efforts of big-box retailers to line their pockets at their own customers' expense."

Richard Hunt, President and CEO of the Consumer Bankers Association, said, "Reasonable minds have prevailed with the Supreme Court ruling. This drawn-out fight should put on notice those members of Congress who insist upon interfering with the free market."

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

previous next

Spotlight Innovators:

North American Bancard | USAePay | Humboldt Merchant Services | Impact Paysystems | Electronic Merchant Systems