The North Dakota Monitor first reported that A North Dakota federal judge has ruled that the Federal Reserve violated the law by allowing banks to charge inflated debit card transaction fees for nearly 15 years. Judge Daniel Traynor found the Fed’s rule allows banks to collect more money than Congress intended when it passed legislation in 2010 to regulate these fees.
The lawsuit was brought by Corner Post, a Watford City truck stop that says it’s paid hundreds of thousands in transaction fees since opening in 2018. The judge ruled the current system – which allows banks to charge up to 21 cents per transaction regardless of actual processing costs – doesn’t properly tailor fees to individual purchases as required by law.
If upheld, the Federal Reserve will need to create new rules that could lower costs for businesses and consumers.
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