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ARTICLE · 18 AUGUST 2025

ND District Court Invalidates Longstanding Debit Card Interchange Rule

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On August 6, 2025, in Corner Post, Inc. v Board of Governors of the Federal Reserve System, the U.S. District Court for the District of North Dakota (the "Court") granted Corner Post's...

United StatesConsumer Protection
Kristen Larson
Kristen Larson
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On August 6, 2025, in Corner Post, Inc. v Board of Governors of the Federal Reserve System, the U.S. District Court for the District of North Dakota (the "Court") granted Corner Post's motion for summary judgment, finding that the Federal Reserve Board (the "Board") exceeded its authority in adopting Regulation II, which in part caps debit card interchange fees. The Court held that the Board exceeded its authority by including the "third category" of costs that were specific to a particular transaction but were not incremental costs incurred by an issuer for the role of the issuer in the authorization, clearance, or settlement of a particular electronic debit transaction. The Court vacated Regulation II and stayed the vacatur pending the resolution of any appeal to Eighth Circuit "in order to prevent interchange transaction fees from becoming a completely unregulated market." For more information about Corner Post and the history of the case, see our prior blog posts

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