ICBA and other groups said in a court filing that further capping the interchange fee cap would not help consumers and would harm the debit card market.
Details: In a joint amicus brief submitted to the Sixth Circuit Court of Appeals in the matter of Linney's Pizza, LLC v. Board of Governors of the Federal Reserve System, ICBA and the other groups said including certain categories of debit card program costs in the interchange fee cap is consistent with the text and purpose of the Durbin Amendment.
Reg II Background: Regulation II regulates the interchange fees that debit card issuers receive for debit card transactions to compensate them for the costs of processing transactions.
About the Court Case: Linney's Pizza challenges Reg II on the ground that the Fed improperly included certain costs in the interchange fee cap calculation. It seeks to require the agency to issue a new rule capping interchange fees far below most issuers’ transaction costs.
ICBA View: ICBA and other groups last year urged the Fed to withdraw its 2023 debit interchange proposal, which would lower the interchange fee that covered debit card issuers receive for debit card transactions under Reg II, until there is legal certainty in several court cases.
