The Supreme Court is likely to make a decision today on whether to hear the retailers’ case against the Federal Reserve Board, says a knowledgeable source. According to the National Association of Convenience Stores, which is the leading the case, the Fed made the debit fee cap too high by unlawfully permitting banks to recover costs forbidden the Amendment.
A district court judge agreed with the retailers, but the Fed won an appeal to the D.C. Circuit. The Supreme Court needs to decide whether to hear the case or let the appeals court decision stand. If they agree to hear it, the retailers may win in the end and send the Fed, and the payment card industry, back to the drawing board, but with directions that will lead to lower debit card caps. A decision, if the Court takes the case, would likely be handed done in June of 2016, almost five years after the Federal Reserve Board issued its rules. For the briefs and more information go here.
Stay tuned to PYMNTS.com to get the latest scoop on what the Supreme Court does.