The National Retail Federation today issued the following statement from
Senior Vice President and General Counsel Mallory Duncan on U.S. District
Judge Richard Leon's decision that found that the Federal Reserve misapplied
Congress' intent when it implemented required swipe fees reforms:
“From the very beginning, retailers and restaurants knew the Federal Reserve
Board of Governors had grossly misapplied the swipe fee law, also known as the
Durbin Amendment. They failed to heed Congress' call to set fee standards that
were ‘reasonable' and ‘proportional' to the actual cost of a transaction.
Instead, the Board manufactured a standard that was two to three times higher
than the Fed staff recommended.
“As a result, small ticket transactions, such as those imposed on convenience
stores and restaurants, skyrocketed under the misapplied law.
“Congress clearly told the Fed to introduce competition and transparency into
the debit card marketplace by making multiple networks available, so as to
reduce swipe fees for merchants and their customers. The Fed failed to do so,
and the court rightly ruled against them as a result. Today's decision is the
first step in setting these initial wrongs right and will ensure that swipe
fee reform is done correctly.”
The National Retail Federation, Food Marketing Institute, National Association
of Convenience Stores, Oil Miller Co. and Boscov's Department Store LCC filed
the initial complaint with the court.
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