US Supreme Court to rule in case involving debit card 'swipe fees'
What was the outcome of the 2015 Supreme Court case on swipe fees?
In 2015, the Supreme Court upheld a lower court's ruling that backed the Federal Reserve's regulation on debit card swipe fees. The regulation set a cap of 21 cents per transaction, which was challenged by retailers who expected a much lower cap. The decision left the cap in place, but it has been revisited in recent years, with the Fed proposing to cut it to 14.4 cents per transaction.
How did President Biden's administration defend the statute of limitations?
President Biden's administration, representing the Federal Reserve Board of Governors, argued that adopting Corner Post's legal position "would substantially expand the class of potential challengers" to government regulations and threatens to "increase the burdens on agencies and courts."
On what grounds did Corner Post challenge the swipe fee regulation?
Corner Post challenged the swipe fee regulation on the grounds that it was "arbitrary and capricious" and exceeded the Federal Reserve's statutory authority under the Administrative Procedure Act. They argued that the six-year statute of limitations should not apply to their case as they only opened for business in 2018 and thus, their legal injury arose after the deadline had passed1.