WASHINGTON--(BUSINESS WIRE)--National Association of Federal Credit Unions (NAFCU) Senior Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement regarding today’s oral arguments before a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit in the Federal Reserve Board’s appeal of a ruling that the Fed’s debit interchange rules are invalid.
“We appreciated the opportunity for credit unions’ concerns to be heard in this critical matter,” said Hunt.
The Fed’s debit interchange fee cap, 21 cents per transaction plus 1 cent for anti-fraud costs, applies directly only to debit card issuers that have more than $10 billion in assets, but market forces are expected to bring the fees down for all issuers over time.
Judge Leon issued his ruling in July, but the Fed filed for an appeal and sought a stay while that appeal proceeds; Leon granted that stay. Leon, in his July ruling, sided with merchants in declaring the Fed’s debit interchange fee cap was too high and that its network non-exclusivity provisions were inadequate.
The stay was requested by all parties pending the appeal of Leon’s July 31 ruling. The stay and current interchange rules will remain in place until a decision on the appeal is issued.
NAFCU filed with other amici in support of overturning Judge Leon’s decision.
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.