Page 2 of 2 Previous
“Certainly, you have to have card fees,” Velander acknowledged. Card issuers “have to be able to cover fraud and other things. They’re allowed to make a profit. What we’re measuring here is what their profits are.”
The Retail Industry Leaders Association, to which Target and Best Buy belong, praised the ruling.
“Retailers welcome today’s ruling and the opportunity to ensure the law is finally implemented as intended,” Bill Hughes, the group’s senior vice president for government affairs, said in a statement. “The flawed Federal Reserve rules have muted the law’s intended benefits to merchants and consumers and resulted in further distortions in the already broken electronic payments market.”
A coalition of banks, credit unions and credit card companies, including the Financial Services Roundtable run by former Minnesota Gov. Tim Pawlenty, criticized the court decision as a “windfall” for big retailers at the expense of consumers.
In a statement, the financial businesses maintained that the earlier Federal Reserve fee caps “did not allow card issuers to cover their costs while receiving a reasonable return on their investments.”
Jim Spencer • 202-383-6123