WASHINGTON (5/7/14)--An important deadline has passed for the debit card interchange fee cap court case between merchants' groups and the Federal Reserve System. The merchants failed to meet a May 5 deadline to request a re-hearing of the case.
That means the Supreme Court is now the lone option for merchants that wish to challenge the ruling.
The merchant interchange claims were made in the case known as NACS, et al. v. Board of Governors of the Federal Reserve System, in which merchants challenged the Fed's implementation of a Dodd-Frank Act-imposed debit interchange cap as too high.
In an early hearing in the case, U.S. District Judge Richard Leon last July vacated the Fed interchange rule and issued a stay so the rule remained in place until the appeals process was completed.
The Credit Union National Association and its partner members of The Clearing House coalition maintained that the cap, in fact, is too restrictive.
The ruling, reached in March by the U.S. Court of Appeals for the District of Columbia Circuit, unanimously rejected claims that the Fed interchange rules violated the plain text of the Durbin Amendment to the Dodd-Frank Act. This ruling will become official May 12.
Any petitions merchants file with the Supreme Court must be filed by June 19. If such a position is filed, the Fed's response and any amicus briefs from supporters must be sent to the court within 30 days after the case is placed on the docket.