Fed to explain reasoning behind Durbin interchange fee calculation
The Federal Reserve has agreed to release additional information about the reasoning it used to calculate base interchange fees under the Durbin amendment to the Dodd-Frank Act.
A report by the National Association of Federal Credit Unions (NAFCU) said the information will be forthcoming within the next 60 days. The agreement was reached in a status conference related to U.S. merchants’ lawsuit against the Fed over its debit interchange rule.
According to NAFCU:
Counsel for the Federal Reserve argued the court should allow the Fed to issue its guidance without the court’s ongoing supervision since the issue was directly remanded to the Fed by the U.S. Court of Appeals. [U.S. District Court Judge Richard] Leon said he would issue an order Monday [June 8] to keep the case within the jurisdiction of the district court until the Fed releases its formal guidance.
Leon expressed skepticism that the Fed would issue guidance “that everyone could be happy with.” He said he is not sure what action, if any, will need to be taken after the Fed’s reasoning is issued.