US court rejects Federal Reserve’s debit card fee cap

A US appellate court has ruled that the Federal Reserve’s rule on debit card interchange fees does not align with Congress’s intent to limit swipe fees, according to Payments Dive. The court’s decision challenges the existing regulatory approach to setting these fees.

This ruling matters for banks, payment firms and retailers, as it could lead to changes in fee structures and compliance obligations. Senior leaders should monitor for further legal or regulatory action that may affect transaction costs and operational planning.