NFIB has filed an amicus brief with the U.S. Court of Appeals for the Eighth Circuit in the case Corner Post, Inc. v. Board of Governors of the Federal Reserve System. The case centers on whether the Federal Reserve Board overstepped its authority by including additional costs when setting a cap on debit card interchange fees.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, commented on the issue: “In recent years, card payments have become the default for most Americans. Small business merchants have no choice but to accept debit cards as a form of payment in order to provide for their customers’ needs. The district court correctly determined that the Federal Reserve considered improper costs in setting the interchange fee amount. Small businesses are hopeful that the court of appeals agrees and rebuffs the attempt by banks to continue charging unreasonably high interchange fees.”
The amicus brief was submitted jointly by NFIB, the Retail Litigation Center, and other business organizations. It argues that Regulation II’s inclusion of prohibited costs in its fee cap conflicts with both the language and intent of the Durbin Amendment. The brief also claims that this regulation results in excessive costs for merchants while allowing banks to earn unreasonable profits at retailers' and consumers' expense.
The NFIB Small Business Legal Center is involved in protecting small business rights through legal advocacy across federal and state courts, including activity before the U.S. Supreme Court.
