The National Federation of Independent Business (NFIB) has expressed approval of a recent court decision in the case of Corner Post, Inc. v. Board of Governors of the Federal Reserve System. The case, heard at the United States District Court for the District of North Dakota, addressed the Federal Reserve's Regulation II. This regulation permits banks to charge debit card swipe fees that NFIB argues are excessively high and burdensome for small businesses.
The court decided to vacate the rule, stating that the Federal Reserve considered factors outside its congressional authority. However, this decision is currently on hold as the government plans to appeal.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, commented on the issue: "NFIB has been very vocal about the disproportionately high cost of swipe fees for small, independently owned businesses." She added that these fees significantly impact small retailers who already face narrow profit margins due to decreasing cash payments.
Milito emphasized that Congress had specified what should be considered when setting swipe fee limits and expressed relief that the court recognized an overreach by the agency. NFIB participated in the case with an amicus brief alongside the Retail Litigation Center, Inc., and Merchant Advisory Group. They argued that Regulation II oversteps statutory authority and contradicts the Durbin Amendment while imposing undue costs on retailers nationwide.
The NFIB Small Business Legal Center continues to advocate for small business owners' rights in courts across the country and is involved in more than 40 cases at various judicial levels.
Information from this article can be found here.
