Advertisement

Merchants Push for Summary Judgment in Interchange Suit

March 12, 2012

Several merchant groups and two retailers, which filed a lawsuit against the Federal Reserve Board in November claiming the agency didn’t follow the intent of the Dodd-Frank Act when it finalized rules implementing the Durbin Amendment to regulate debit interchange and network routing and exclusivity, now are seeking summary judgment to end the case before it reaches a courtroom. The motion for summary judgment claims the rules exceed the authority granted to the Fed by Congress, and that the final rule is "arbitrary, capricious, an abuse of process and otherwise not in accordance with the law in violation of the Administrative Procedure Act.”

While the Durbin Amendment was seen as a win for merchants when it was passed, some—notably those that process a high volume of low-value transactions—actually saw the amount they pay in interchange rise when the card networks eliminated lower rates for small-ticket purchases.

The motion argues that the Fed’s final rule “greatly expanded the costs allowed in the interchange fee standard,” which resulted in “shifting billions of dollars in additional costs from the issuing banks to merchants that accept debit cards.” The suit also says the final rule mishandled the network non-exclusivity portion of the Durbin Amendment, resulting in “entire categories of debit card transactions—such as Internet and telephone transactions, hotel stays and car rentals—not being afforded the competitive network choice required by statute.”

On Thursday, the National Restaurant Association joined the Food Marketing Institute, the National Association of Convenience Stores, the National Retail Federation, Boscov’s Department Store and Miller Oil Co. in the suit.


  • China Weighs in on N.Y.'s Proposed Bitcoin Regs - Aug. 28, 2014
    China Weighs in on N.Y.’s Proposed Bitcoin RegsCEO's of the three  largest digital-currency exchanges in China sent a joint  letter to Benjamin Lawsky, superintendent of the New York Department of  Financial Services (NYDFS), last week, noting that the outcome of New York's  decision on Bitcoin will serve as a model for "regulators around the world."

Advertisement


  • Oberthur Acquires NagraID - Aug. 21, 2014
    Oberthur Acquires NagraIDFrench smart-card manufacturer Oberthur Technologies on Tuesday announced an acquisition that will enable the company to address card-not-present fraud, which is expected to surge as EMV chip payment cards replace magstripe cards.
  • Rumor: Braintree Exploring Bitcoin - Aug. 18, 2014

    Rumor: Braintree Exploring Bitcoin

    Published reports indicate Braintree, the online and mobile payments provider acquired by eBay last December, is in talks with bitcoin-acceptance providers that would enable the PayPal unit to process bitcoin transactions for its merchants.

  • Canadian Bitcoin Processor Nets $8.5 Million Round - Aug. 11, 2014

    Canadian Bitcoin Processor Nets $8.5 Million RoundVogogo, a Canadian e-commerce processor based in Calgary, said last week it has secured an $8.5 million round of financing that will enable it to expand its recent success in processing bitcoin and other cryptocurrencies in Canada to the U.S. and other countries around the world.

  • Twitter Continues to Test Payments - Aug. 11, 2014
    Twitter Continues to Test PaymentsIt appears Twitter’s plans to implement a payments function are continuing. Reports from multiple users indicate the presence of a “Payments and Shipping” option in the settings of Twitter’s Android mobile app.
  • Bitcoin Gets a Voice in Washington - July 21, 2014
    Bitcoin Gets a Voice in WashingtonAt a conference in Chicago on Saturday, the first Bitcoin trade association that will employ full-time lobbyists in Washington, D.C. launched with the aim of swaying legislators and educating consumers and merchants on the digital currency.
  • SafetyPay Joins Alpha Payments Cloud ‘Hub’ - July 7, 2014
    SafetyPay Joins Alpha Payments Cloud ‘Hub’Alpha Payments Cloud, a Dublin, Ireland-based company that connects acquirers, merchants and technology providers in one place where they can buy and sell the payments services needed by the entire ecosystem, has added SafetyPay to its roster of providers.

Advertisement

 

 

Sign Up Today Free

Receive the twice weekly CNP Report and monthly feature articles providing in-depth examinations of global CNP issues.

Please take a moment and register.
* First Name:

* Last Name:

* Password:

* Confirm Pwd:

* Email:

* Category:

Company:

 
Captcha
Answer:

 

 

CNP Archive

Researching companies or people in the CNP industry? Search our past coverage for targeted news and information.

Search here