Retailers sue Fed over debit card fees

Groups say agency ignored the law, setting cap too high

A group of retailers filed suit against the Federal Reserve yesterday, claiming the agency ignored debit card rules when it set the cap on fees banks may charge merchants for customers’ debit card transactions.

Plaintiffs in the suit—which include the National Retail Federation, Miller Oil, the National Association of Convenience Stores, the Food Marketing Institute and Boscov’s Department Store—say the Fed gave in to lobbyists’ pressure when it set the per-transaction cap at around 24 cents. The suit says the cap is an “unreasonable interpretation” that exceeds the Fed’s authority.


Cathleen Flahardy

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