FMI Applauds Eighth Circuit Decision Vacating Debit Card Swipe Fee Cap

Arlington, VA - Today, FMI - The Food Industry Association President and CEO Leslie G. Sarasin issued the following statement in response to the U.S. Court of Appeals for the Eighth Circuit's decision in Corner Post, Inc. v. Board of Governors of the Federal Reserve System, which upheld a lower court ruling vacating the 21-cent cap on debit card swipe fees. FMI previously filed an amicus brief in the Eighth Circuit advocating for this outcome.

"Today's decision is an important victory for grocery customers and food retailers in our long fight against unreasonably high debit card swipe fees. The debit swipe fee cap that the Federal Reserve set in 2011 has been long overdue for reform. Since then, the Fed's own data has shown that banks' costs to process debit card transactions have gone down dramatically, yet the rate charged to food retailers and all other merchants has not changed in the 15 years since the law went into effect.

"FMI is proud to have joined other retail associations in urging the Eighth Circuit to uphold the lower court's decision. We applaud the ruling and urge the Federal Reserve Board of Governors to move quickly to establish a new debit regulated rate that reflects Congress's intent, along with a process for regular updates going forward. Ensuring a 'reasonable and proportional' debit regulated rate, as required by the Durbin Amendment, is critically important to keeping costs low for customers and merchants alike."