A US district court yesterday ruled the cap on interchange fees that banks charge retailers for processing credit card transactions to be unlawful, describing it as excessive and not in keeping with legislators' intent.
The current cap, set by the Federal Reserve in 2010 after the passing of the Dodd-Frank Act – the legislative overhaul of US financial regulations prompted by the financial crisis – allows banks to charge merchants up to $0.21 per transaction in interchange fees.
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