Federal Reserve to Appeal Interchange Ruling
August 22, 2013
Aug. 22, 2013
The Federal Reserve Board this week announced plans to appeal a district court ruling striking down the Fed’s rules on interchange fee caps financial institutions charge merchants for credit and debit card processing.
U.S. District Court Judge Richard Leon’s July 31 decision wrecked havoc on the financial services industry. In a follow-up hearing the judge even raised the possibility that financial institutions might have to “disgorge” revenue they have earned through the fees. The interchange rule applies to financial institutions with assets greater than $10 billion, but some smaller financial institutions are impacted due to market ripple effect.
Financial institutions long held the Fed’s rules set the cap too low, profit grabs for retailers and not beneficial to consumers. With the Fed’s appeal now in the works, the credit union movement continues to work with the Credit Union National Association (CUNA) for a more effective solution.
“We’re encouraged by the Fed’s decision to appeal the ruling. We continue to support CUNA’s legal team and our coalition partners in working towards an interchange fee structure that is fair and appropriate for credit unions and their members,” said Troy Stang, president and CEO of the Northwest Credit Union Association (NWUCA).
For more information on the pending court proceedings, please read:
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