Credit/Debit Cards, Regulation

Parties in support of Fed appeal on debit interchange to submit briefs by Oct. 21

126px-US-FederalReserveSystem-Seal.svgThe Federal Reserve and other parties in the debit interchange rule lawsuit against Visa and MasterCard are expected to submit briefs by Oct. 21 supporting the central bank’s appeal of a ruling that effectively invalidates the Fed’s rule.

An appeals court received and granted a motion last week filed jointly by all parties in the suit for an expedited briefing and appeal consideration of D.C. district court Judge Richard Leon’s decision to declare the Fed’s rule on debit interchange fees—which will remain in effect throughout the appeal process—as having been written against congressional intent.

The National Association of Federal Credit Unions expressed support for Leon’s decision and said it is in discussions with other parties to the suit that will be submitted in support of the Fed’s appeal.

Once filed, merchants will have until Nov. 20 to respond to the Fed’s brief, and the Fed will have until Dec. 4 to respond to the merchants’ brief.

In the U.S., the Fed rule stipulates that debit interchange fees go no higher than 21 cents per transaction, plus one cent for anti-fraud costs, for only issuers with more than $10 billion in assets. The European Commission is currently in the process of drafting a similar fee cap, Wall St. Cheat Sheet reports.

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