WASHINGTON — The Federal Reserve Board has filed its reply to merchant arguments that state the agency went beyond the intent of Congress in setting the current interchange fee cap under the Durbin Amendment.
Last month, merchants shared their position with the U.S. Court of Appeals for the District of Columbia Circuit that the court should uphold an earlier court decision that struck down the debit card interchange fee cap and network non-exclusivity regulations.
The Federal Reserve has argued that its rule setting swipe fee caps under the Durbin Amendment should be allowed to stand because the Fed set the cap "in complete fealty to the statute and its purpose."
In its response Wednesday, the Fed challenged merchant claims that the Federal Reserve erred in implementing the new debit guidelines, and that the rules should be thrown out and rewritten.
The Fed requested reversal of the judgment of the district court that struck down the current interchange cap and asked that the case be remanded with instructions to enter judgment in favor of the Fed and its rule.
Oral arguments from the Fed and merchants are scheduled for Jan. 17.
