The Federal Reserve agreed to release guidance explaining how it calculated transaction monitoring costs in its base interchange fee during a Monday status conference in the U.S District Court. The hearing in Washington addressed a remaining issue from a suit filed by the National Association of Retailers and other groups in July 2013.
The agreement is not anticipated to affect credit unions.
"At present the Federal Reserve has given no indication that it will change direction and substantively amend the interchange rule," said NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt, who attended the hearing.
Recommended For You
Rather, the Fed will explain its reasoning behind the rule's fraud allowance calculation.
U.S. District Judge Richard Leon, who again presided over the proceedings and originally ruled in retailers' favor, said he would issue an order to keep the case within the jurisdiction of the court until the Fed releases the guidance, which is expected within 60 days. However, Fed attorneys argued the regulator should not remain under the court's ongoing supervision.
According to NAFCU, Leon said he was not sure what action, if any, would be taken by the court after the guidance is released.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
