As we’ve discussed, a recent court ruling on the debit card fee caps set by the Federal Reserve under the Durbin Amendment were found to be invalid. The Fed was ordered to start over. But before rewriting the debit card Interchange rules it originally issued in 2011, which would be a lengthy and disruptive process, the Fed has announced that it will appeal to a higher court.
The Fed said it would pursue an expedited appeal in order to speed up resolution but if the judge lifts his stay on the decision to invalidate the current rules it would result in having no fee caps on debit-card transactions in place. Both banks and merchants have urged the Judge for the stay to continue until the appeal process concludes and new rules can be drafted.