Debit Interchange Fee Cap Fight Moves to Sixth Circuit

The Retail Litigation Center (RLC) led a coalition of trade associations in filing an amicus brief in Linney’s Pizza, LLC v. Federal Reserve at the U.S. Court of Appeals for the Sixth Circuit arguing that the Federal Reserve Board exceed its authority when calculating debit interchange fees.  

Regulation II, the challenged regulation, governs billions of debit transactions that occur each year at the RLC’s and other amici’s member businesses. Because Reg. II improperly includes costs that Congress did not authorize as part of the Durbin Amendment, businesses have been forced to pay billions of dollars in inflated fees. According to the brief, “Regulation II has enabled issuers to extract disproportionate profits from merchants…Issuers have taken an estimated $100 billion or more in excess profits from merchants during this period, including over $16 billion in 2023 alone.” This case mirrors Corner Post, Inc. v. Federal Reserve at the Eight Circuit where the RLC also led a coalition in an amicus brief.

“Retailers operate on razor‑thin margins, yet Regulation II forces them to subsidize bank costs that Congress never intended them to bear,” said Monica Welt, RLC President. “This case is about restoring the balance Congress struck in the Durbin Amendment and ensuring that debit fees are truly reasonable, proportional, and grounded in law.”

The amicus brief was joined by FMI, The Food Industry Association; Merchant Advisory Group; National Association of Convenience Stores; National Federation of Independent Business Small Business Legal Center, Inc.; Restaurant Law Center; Arkansas Retailers Association; Iowa Retail Federation; Kentucky Retail Federation; Michigan Retailers Association; Minnesota Retailers Association; and Missouri Retailers Association.

Adam Unikowsky of Jenner & Block served as counsel and drafted the brief.

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 Media Contact: press@rila.org

Directed by the chief legal officers of the country's leading retail companies, the Retail Litigation Center (RLC) is the only organization dedicated to advocating for the industry's top priorities in the federal and state judiciary. The RLC also works with leading law firms and retail corporate counsel to develop forward-thinking strategies to combat meritless mass action litigation. Founded by the Retail Industry Leaders Association (RILA) in 2010 as an independent organization, the RLC is a 501(c)(6) membership association open to all retailers and select law firms.