North Dakota merchants sue Federal Reserve over debit card fees

Money Card Business Credit Card 50987

NEW YORK – Two trade groups representing businesses in North Dakota filed a lawsuit Thursday against the Federal Reserve, asking the agency to lower its 10-year-old cap on “swipe” fee banks charge to process debit card transactions.

The lawsuit, filed by the North Dakota Retail Association and the North Dakota Petroleum Marketers Association in U.S. District Court, argues that the agency failed to follow instructions outlined by federal law and said it should abandon the rule that caps those fees at 21 cents for cards from the largest U.S. banks.

The suit comes as the popularity of debit cards surge and retailers have paid billions of dollars more than Congress intended while banks’ costs have dropped.

Leave a Reply

Your email address will not be published. Required fields are marked *