​In the last few years, business owners have brought several lawsuits against banks and credit card companies over their high swipe fees. In May of 2025, we advised our clients that the In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, or “Swipeopoly” case had settled and business owners could make a claim for a portion of the settlement proceeds. The allegations in that suit were that Visa, Mastercard and other credit card companies were charging usurious or unconscionable fees to businesses that accepted their cards. These fees were frequently passed on to the customer at the register. However, this is not the only case involving the fees charged when consumers swipe a card for payment. A recent federal court decision addressed the validity of debit card fees.

Challenge to the Regulation of Debit Card Fees

In 2021, Corner Post, a convenience store, commenced an action against the Federal Reserve in North Dakota called North Dakota Retail Association et al v Board of Governors of the Federal Reserve System. Corner Post alleged the Federal Reserve overstepped its authority when it created a regulation that capped the amount banks charge merchants for processing debit transactions.

At the time, the Federal Reserve moved to dismiss the matter because the claim was filed after the statute of limitations had run. The District Court in North Dakota dismissed the action on those grounds in 2022, and the U.S. Circuit Court affirmed the decision. However, the Supreme Court reinstated the case in a 6-3 ruling in 2024.

In its latest decision, the District Court considered the validity of the regulation of debit card fees. The Court agreed with the plaintiff that the Federal Reserve exceeded its authority and issued an order vacating the regulations. However, the vacatur of the regulation does not immediately take effect. The Federal Reserve now has two options. It can either appeal the ruling, which could take months or years to resolve, or revisit the fees it allows banks to charge retailers when they accept debit card transactions, which will also take time.

Impact of the Decision

At this point, the case is in limbo, so neither side will see a change in fees until an appeal is decided or the Federal Reserve develops new regulations.

If you believe this ruling affects your business, please contact one of our trusted attorneys.