Swipe Fee Rule Overturned

A U.S. District Court threw out the debit swipe fee limit established by the Federal Reserve in 2012.  The swipe fees are fees that banks receive from merchants when customers use their debit cards.

The District Court Judge Leon ruled that the Fed misinterpreted the intent of the Durbin Amendment, which directed the Fed to consider the costs that banks incur when setting the fee standard.

The court ruling will remain in place until the Fed can agree on provisional standards or replace portions of the rule entirely.

The International Franchising Association (IFA) joined many other businesses in opposing the rule implemented by the Fed.

See previous story.

Sources:
International Franchise Association (IFA)

By Jack River