Earlier this year, the D.C. Circuit largely upheld the Federal Reserve’s debit card rule and network non-exclusivity rule, reversing the decision of the U.S. District Court that was consistent with the views of the merchant community. FMI and the other plaintiff-petitioner merchant groups argue that the final rule is inconsistent with the clear direction provided by Congress and allows banks to charge American merchants and consumers twice as much as the proposed rule.
In the petition, filed in conjunction with NACS, National Retail Federation, Miller Oil, Inc., Boscov’s Department Store, LLC, and National Restaurant Association, the merchant groups assert that this case is so significant to the U.S. economy, merchants and consumers and was seen by two different judicial bodies in such contrasting ways that it deserves the review of the U.S. Supreme Court.
FMI President and CEO Leslie G. Sarasin said, “Congress originally passed a law that was designed to lower swipe fees paid by customers and merchants, but the final Federal Reserve rule disregarded the legislative language and actually raised rates on many transactions. Our food retailers and wholesalers consistently serve their customers based on a simple merchandising strategy – low markups and high volume – and these excessive swipe fees exceed the industry’s one-percent net profit on shoppers’ orders.
“We urge the Supreme Court to agree to hear this case recognizing that the Fed’s rule has a significant impact on anyone who uses or accepts a debit card, including shoppers, merchants of all sizes and any other non-merchant entity responsible for the 50 billion debit card transactions each year.”