National Association of Federal Credit Unions (NAFCU) has hailed the federal appeals court’s decision to overturn the district court’s decision on the Federal Reserve Board’s interchange rule.
According to NAFCU, the current Federal Reserve interchange rule enforces below-cost caps on interchange fees and fails to provide for a reasonable return.
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NAFCU government affairs and general counsel senior vice president, Carrie Hunt, said NAFCU is pleased with the appeals court’s decision as it mitigates the harm that would have been done by the district court ruling.
However, NAFCU still feels that the Federal Reserve’s debit interchange fee cap is too low.
Hunt said they will continue to advocate for credit unions’ interests and abilities to receive income on card services and recover costs incurred in transactions.
Following the federal appeals court’s verdict, merchants and their trades could seek a rehearing from the appeals court or could ask the Supreme Court to hear the case.
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