8TH CIR.Court order
Eighth Circuit upholds vacatur of Federal Reserve's debit card swipe fee cap
The U.S. Court of Appeals for the Eighth Circuit on October 26, 2026, affirmed a ruling that struck down the Federal Reserve's 21-cent cap on debit card interchange fees, finding the Fed improperly let banks count costs not tied to individual transactions, such as fraud prevention. The Fed must now write a fee structure that reflects the incremental-cost standard Congress set in the 2010 Dodd-Frank Act.
Order (Bloomberg Law) → · American Banker
Key points
- The panel affirmed a district court decision invalidating the 21-cent per-transaction cap the Fed set in 2011.Bloomberg LawAmerican Banker
- It held the Fed wrongly included fixed costs, network fees, fraud monitoring and fraud losses in the cap.Bloomberg LawAmerican Banker
- The Durbin Amendment to the Dodd-Frank Act ties debit fees to the incremental cost of each transaction.American Banker
- North Dakota truck stop Corner Post sued in 2021, backed by retail groups and Sen. Dick Durbin.American Banker
- The Fed must write a new fee structure; it was not immediately clear whether it will seek Supreme Court review.Bloomberg LawAmerican Banker
Sources2 articles across 2 outlets
Filed under
Court orderU.S.Regulation II (Debit Card Interchange Fees and Routing)8th Cir.AdministrativeFinancial servicesRegulatoryFor practitioners