WASHINGTON (AP) — The Federal Reserve is appealing a court ruling that rejected its cap on how much banks can charge businesses for processing debit card transactions.
Scott Alvarez, general counsel for the Fed, told a federal judge Wednesday that it opposed U.S. District Judge Richard Leon's ruling last month. Leon said the Fed's cap of 24 cents per swipe set in 2011 is too high.
The rule remains in place in the meantime.
Congress mandated a cap on debit-card swipe fees as part of the 2010 financial regulatory overhaul. Prior to the cap, fees averaged 44 cents per swipe.
Leon's ruling was a victory for a coalition of retail groups, which sued the Fed over its cap.