Federal judge throws out controversial cap on swipe fees

A federal judge on Wednesday invalidated the Federal Reserve 21-cent cap on debit card swipe fees, agreeing with merchants that the fee was more than Congress intended. U.S. District Judge Richard Leon said the Fed rule was an "utterly indefensible" interpretation of the Dodd-Frank Act and that he wanted to see changes within months. Sen. Richard Durbin, D-Ill., the author of the swipe fee cap mandate provision, called it a victory for consumers and small businesses because it will lead to lower interchange rates.

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