Retailers’ Swipe-Fee Win Could Limit Debit Card Offerings

Law360, New York (July 31, 2013, 9:19 PM EDT) -- Retailers won a major victory Wednesday when a judge struck down the Federal Reserve’s cap on debit card interchange fees for being too generous to banks, but experts said banks may cut back on debit card products if the agency’s revision of the rules cuts too deeply into their “swipe-fee” revenue.

Judge Richard J. Leon of the federal district court in Washington ruled that the Fed violated both the text and the spirit of the so-called Durbin amendment to the Dodd-Frank Act when it issued final...
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