{"id":2050558,"date":"2023-09-30T07:49:01","date_gmt":"2023-09-30T11:49:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-will-hear-stores-lawsuit-over-allegedly-illegal-debit-card-swipe-fees\/"},"modified":"2023-09-30T07:53:14","modified_gmt":"2023-09-30T11:53:14","slug":"supreme-court-will-hear-stores-lawsuit-over-allegedly-illegal-debit-card-swipe-fees","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-will-hear-stores-lawsuit-over-allegedly-illegal-debit-card-swipe-fees\/","title":{"rendered":"Supreme Court to Hear Store&#8217;s Lawsuit on Debit Card Swipe Fees"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsupreme-court-will-hear-stores-lawsuit-over-allegedly-illegal-debit-card-swipe-fees%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2050558&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>The\u2064 Supreme\u200d Court Takes on Debit Card Swipe\u200b Fee Case, Ignoring Time Limitation<\/h2>\n<p>The Supreme Court has agreed to\u2062 hear a case \u200bthat has caught the attention of merchants\u200b across the country. \u200dIn this case, a store is challenging \u2063a Federal Reserve\u200d policy on debit card swipe\u200d fees, arguing that it is illegal. What makes this case even more \u2064interesting is that the store \u200bis asking the court to ignore a time limitation, allowing them to challenge the policy\u200d despite the deadline.<\/p>\n<p>This appeal comes \u2062at\u200b a time when merchants are growing increasingly\u2062 concerned\u2063 about\u2062 high transaction processing fees. In fact, a new bill called the Credit\u2062 Card Competition Act has recently been introduced in \u200cCongress. This bill, supported\u2063 by Senators Dick Durbin and Roger Marshall, aims to enhance credit card competition \u200cand reduce\u200b fees. It would require large banks to allow card payments to be transmitted over alternative \u2062networks, breaking the &#8220;Visa-Mastercard duopoly&#8221; that currently charges a hefty\u200b fee for \u2062every swipe.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related\u2064 Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n          <a href=\"http:\/\/www.theepochtimes.com\/article\/a-bipartisan-credit-card-bill-reintroduced-in-congress-to-foster-greater-competition-5321571?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>A Bipartisan Credit Card\u2062 Bill Reintroduced In Congress to Foster Greater\u2062 Competition<\/h3>\n<p>          <\/a>\n        <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">6\/9\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/a-bipartisan-credit-card-bill-reintroduced-in-congress-to-foster-greater-competition-5321571?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n      <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/newsom-proposes-400-rebates-for-all-car-owners-4357845?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Newsom \u2062Proposes $400 Debit Cards for All Car Owners to Offset Gas \u2062Prices<\/h3>\n<p>          <\/a>\n        <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">3\/23\/2022<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n        <a href=\"http:\/\/www.theepochtimes.com\/us\/newsom-proposes-400-rebates-for-all-car-owners-4357845?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n      <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p>While this legislation aims to benefit merchants, critics argue that it \u200bcould jeopardize the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/americans-using-credit-card-rewards-to-offset-inflation\/\" title=\"Americans Using Credit Card Rewards to Offset Inflation\">credit card rewards<\/a> that Americans enjoy. Nevertheless, the National\u2063 Retail \u200bFederation (NRF) has praised the Supreme\u200d Court&#8217;s \u200cdecision to\u200c hear the case. According to \u200bNRF Chief Administrative Officer and\u200b General\u2063 Counsel Stephanie Martz, the Federal Reserve has failed to update the \u200ddebit card\u200c swipe fee cap as required by Congress, resulting in excessive\u2063 costs for merchants and consumers.<\/p>\n<p>The case in question, Corner Post Inc. v. \u200dBoard of Governors of the Federal\u200b Reserve System, was granted an order by the\u2064 Supreme Court on Sept. \u206229. No \u200cjustices dissented, although the court did not \u200bprovide an explanation for its decision. Oral arguments for the \u2064case will be scheduled at a later date.<\/p>\n<div class=\"my-5\">The petitioner, \u200bCorner Post \u2062Inc., is a convenience store and truck \u2063stop in North Dakota that opened in 2018. According to the store&#8217;s petition filed\u200b with the court on April 13, they\u200d claim \u2063to\u200c have been <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-will-hear-stores-lawsuit-over-allegedly-illegal-debit-card-swipe-fees\/\" title=\"Supreme Court to Hear Store's Lawsuit on Debit Card Swipe Fees\">paying\u200c unlawful debit \u200bcard fees amounting<\/a> to hundreds of thousands of dollars each year due to the policy they are contesting. They believe their lawsuit deserves consideration\u200b by the\u2064 courts.<\/div>\n<p>In\u2062 2021, the\u2062 store sued\u2064 the Federal Reserve under the Administrative Procedure Act (APA), challenging\u2064 a 2011 rule that governs certain\u2063 fees for debit card\u200c transactions. The store argued that the interchange and processing fees imposed \u2062on merchants were arbitrary, capricious, and\u2063 violated the Durbin Amendment to \u2062the Dodd-Frank Wall Street Reform \u200band Consumer Protection\u200c Act of 2010.<\/p>\n<p>The \u2063U.S.\u2062 Court of\u2064 Appeals for\u200d the 8th Circuit, however, determined\u2062 in December 2022 that the store&#8217;s claims were barred by the six-year statute \u2064of limitations. This decision contradicted another\u2064 federal court \u2063of\u200b appeals. The \u2064store&#8217;s petition highlights the \u200dfact that it is unclear\u200b how\u2062 they could have been \u2062affected by the rule before even processing a single debit card payment.<\/p>\n<p>U.S. Solicitor General \u2063Elizabeth Prelogar has \u2064urged the Supreme Court to reject the store&#8217;s \u200cpetition, arguing that the 8th Circuit&#8217;s\u2064 decision aligns with other circuits&#8217; rulings on \u2064time limits for challenging agency\u200b rules.<\/p>\n<div class=\"my-5\">The Supreme Court&#8217;s decision\u2064 on this case will\u2064 have significant\u2064 implications for merchants and the future of debit card swipe fees. As the court resumes oral arguments in October, all eyes \u200cwill be on the outcome of\u2063 this pivotal case.<\/div>\n<\/blockquote>\n<p> <\/p>\n<h2> \u2062 What potential impact could the Supreme Court&#8217;s decision on the legality of swipe fee regulations have on the industry and future regulations<\/h2>\n<p><span>  Vernors \u2062of the Federal Reserve\u2064 System, revolves around the regulations governing debit card swipe\u2063 fees. These fees are transaction fees that businesses pay to banks for every debit card\u200c sale. In\u2062 2011, the Federal Reserve implemented a policy that capped these swipe fees at\u200c 21\u2064 cents per transaction, plus an \u2064additional \u20620.05% of the transaction value.<\/p>\n<p>However, Corner Post Inc., a grocery store in St.\u200c Louis, Missouri, argues that the\u200c Federal Reserve should have set a lower cap on \u200dswipe fees,\u200b as mandated by Congress. The store claims that the policy\u200d violates the Durbin \u200dAmendment, a\u2063 provision\u200d of the Dodd-Frank Wall Street Reform \u200band Consumer Protection \u200bAct aimed at reducing swipe\u200b fees.<\/p>\n<p>The Durbin Amendment required the Federal Reserve \u200cto establish \u2063regulations that would result in &#8220;reasonable&#8221; swipe fees. Critics argue that the\u200d current cap does not align with this \u200brequirement and \u2064that it allows\u2063 banks to \u2063charge\u200d excessive fees to merchants.<\/p>\n<p>Furthermore,\u2062 Corner Post Inc. is also challenging \u200cthe time limitation on filing such a case. Usually, cases \u200cchallenging Federal Reserve regulations must\u2064 be \u200bfiled within two years after\u2064 the regulation\u2063 is \u200bimplemented. However,\u200c the store\u200d argues that \u2063they discovered the potential violation \u200donly recently and should\u200c be allowed \u2062to challenge \u2062the policy despite\u200d the deadline.<\/p>\n<p>The Supreme Court&#8217;s decision to take on \u200bthis case has\u2062 garnered significant attention from merchants across the country. With transaction processing fees becoming a growing concern for businesses, this case has the potential to\u2064 have a significant \u2063impact on the industry.<\/p>\n<p>In addition \u200bto this \u200dlegal battle, there is\u200c also a push for legislative action\u2064 to address swipe fees. The\u2062 Credit \u200bCard Competition \u200cAct,\u200b introduced in Congress with bipartisan support, seeks to\u2062 enhance competition\u200c in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ever-tried-to-get-a-job-outside-of-their-fathers-business-hunter-biden-targets-trump-children\/\" title=\"\u2018Ever Tried To Get A Job Outside Of Their Father\u2019s Business?\u2019 Hunter Biden Targets Trump Children\">credit card industry<\/a> and reduce fees. The proposed legislation would require \u200clarge \u200cbanks to allow \u200bcard payments to be transmitted over\u2062 alternative networks, thereby\u2063 breaking the dominance of Visa and Mastercard.<\/p>\n<p>While merchants welcome \u2062the prospects of reduced fees, critics\u200c argue that such legislation may threaten the credit card rewards that \u200bconsumers enjoy. These rewards, such as cashback or airline miles, are often\u200b funded by swipe \u200cfees. In a balance between the interests of merchants and consumers, finding a solution that benefits both parties is\u200b crucial.<\/p>\n<p>The NRF&#8217;s support for the Supreme Court&#8217;s \u2064decision to hear\u2062 the case indicates\u2062 the widespread concern about excessive swipe fees. The organization\u2062 believes that the Federal\u200d Reserve \u200bhas\u2064 not met its \u2063obligation to \u2064regularly review and adjust\u2063 swipe fee \u2062caps. Consequently, merchants and \u200bconsumers bear the burden of disproportionately high costs.<\/p>\n<p>As\u200c the Supreme \u2063Court takes on the Corner \u2064Post Inc. v. Board of Governors of the Federal Reserve System case, the outcome will not only \u2063affect the involved parties but also set a precedent for future regulations and legal battles \u2064regarding debit card swipe fees. It remains to be seen how the\u200d Court will decide on the legality of the Federal Reserve&#8217;s policy and \u2063the \u200ctime limitation for challenging it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Supreme Court will review a case where a store seeks to challenge a Federal Reserve policy on debit card swipe fees. The store wants the court to overlook a time limitation, claiming the policy is illegal. This appeal reflects merchant concerns about excessive transaction processing fees and follows the Credit Card Act proposal.<\/p>\n","protected":false},"author":168,"featured_media":2050559,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2050558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/168"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2050558"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2050559"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2050558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2050558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2050558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}