As previously promised, both sides in the ongoing fight over theFederal Reserve's rule on debit interchange have filed a jointrequest with the appeals court for a speedy appeals decision.

U.S. District Court Judge Richard Leon guttedthe existing interchange rule in a July 31 decision thatoverturned both the debit interchange cap for large asset debitissuers and a provision meant to guarantee network competition.

The Federal Reserve announced in an Aug. 21 court hearing itwill defend its current debit interchange rule before an appealscourt. And in a twist, the Fed also said it will join forces withits opponents to seek a speedy appeal decision.

The two sides filed their request yesterday.

The merchants expressed their positions by outlining what theysaid were their ongoing damages from the old rule.

“Merchants assert that every day that passes under the FinalRule potentially causes them significant and irreparable injury,”the merchants wrote in their brief. “Merchants assert that theinterchange fee standard adopted by the Board includes costs thatare unallowable under the statute, and that the allowable maximuminterchange fee should therefore be lower than the 21 cents plusad valorem element allowed under the Board's rule. Even ifthey prevail on appeal, the Merchants may never recover billions ofdollars in interchange fees already paid.”

The Federal Reserve argued that the overall payments industryneeded a fast decision.

“Thus, expedition of the Board's appeal would avoid the adverseeffects on participants in debit card payment systems that wouldresult from the elimination of the fee caps and enhanced routingrequirements in the Board's regulation, or at least shorten theperiod during which those harms would continue,” the Fed contended.“Moreover, assuming a stay pending appeal were to be entered toaddress these concerns, expedition of the Board's appeal wouldminimize the potential for any harms to third parties, such as theMerchants, if the district court decision is affirmed onappeal.”