Recently, the U.S. District Court for the District of North Dakota received a motion from two banking associations seeking intervenor status in a case challenging Regulation II, which regulates interchange fees received by debit-card issuing banks. As previously covered by InfoBytes, the case here, while different in nature, was related to the recent U.S. Supreme Court case of Corner Post Inc. v. Board of Governors of the Federal Reserve System, which held the statute of limitations for an APA challenge accrues from the date of a plaintiff’s injury, not from the date of final agency action.
One plaintiff argued that Regulation II, which allows the Fed to consider several categories of costs when setting interchange fees, exceeds the scope authorized by the Durbin Amendment, enacted as part of the Dodd-Frank Act. That plaintiff contended that only a single category — the incremental costs of authorizing, clearing and settling a particular debit transaction — can be considered. If accepted, this argument could result in new regulations that reduce interchange fees.
The movants, representing major banks from around the U.S., intend to challenge the plaintiff’s interpretation of the Durbin Amendment and ensure that interchange fees continue to capture the costs incurred by banks when processing debit card transactions. The motion, filed on October 16, remains pending before the district court.
