Swiped Clean: NRF Applauds Latest Decision on Swipe Fees
In late July, the National Retail Federation issued a statement from Senior Vice President and General Counsel Mallory Duncan on U.S. District Judge Richard Leon's decision that found that the Federal Reserve misapplied Congress' intent when it implemented required swipe fees reforms. The statement read:
"From the very beginning, retailers and restaurants knew the Federal Reserve Board of Governors had grossly misapplied the swipe fee law, also known as the Durbin Amendment. They failed to heed Congress' call to set fee standards that were 'reasonable' and 'proportional' to the actual cost of a transaction. Instead, the Board manufactured a standard that was two to three times higher than the Fed staff recommended.
"As a result, small ticket transactions, such as those imposed on convenience stores and restaurants, skyrocketed under the misapplied law.
"Congress clearly told the Fed to introduce competition and transparency into the debit card marketplace by making multiple networks available, so as to reduce swipe fees for merchants and their customers. The Fed failed to do so, and the court rightly ruled against them as a result. Today's decision is the first step in setting these initial wrongs right and will ensure that swipe fee reform is done correctly."
The National Retail Federation, Food Marketing Institute, National Association of Convenience Stores, Oil Miller Co., and Boscov's Department Store LCC filed the initial complaint with the court.
The NRF represents retailers of all types and sizes, including chain restaurants and industry partners, from the United States and more than 45 countries abroad.
Share this Feature
Comments:comments powered by Disqus
- Multi-Unit Franchising
- Get Started in Franchising
- Open New Units
- Featured Franchise Stories