SmartBrief
Confirm favorite deletion?
Banking Law Keyed to Barr, 3rd Ed.
National Association of Convenience Stores v. Board of Governors of the Federal Reserve System
Citation:
958 F. Supp. 2d 85 (2013)Facts
In 2010, Congress passed the Durbin Amendment to address rising debit card fees by requiring that interchange fees be “reasonable and proportional” to the issuer’s costs and by prohibiting network exclusivity arrangements. The Amendment directed the Board to establish standards for determining whether interchange fees meet this requirement, specifically instructing the Board to consider only “incremental costs” incurred by issuers for authorization, clearance, and settlement (ACS) of transactions, while excluding other costs. The Board initially proposed limiting allowable costs to variable ACS costs, with a cap of 12 cents per transaction. However, in its Final Rule, the Board significantly expanded the allowable costs to include fixed costs, transaction monitoring costs, fraud losses, and network processing fees, resulting in a higher cap of 21 cents plus 0.05% of the transaction value. For network non-exclusivity, the Board required only that each debit card be able to function on at least two unaffiliated networks, rather than requiring multiple network options for each type of transaction. Plaintiffs challenged both aspects of the Final Rule as exceeding the Board’s statutory authority.
Only StudyBuddy Pro offers the complete Case Brief Anatomy*
Access the most important case brief elements for optimal case understanding.
*Case Brief Anatomy includes: Brief Prologue, Complete Case Brief, Brief Epilogue
- The Brief Prologue provides necessary case brief introductory information and includes:
Topic:
Identifies the topic of law and where this case fits within your course outline.Parties:
Identifies the cast of characters involved in the case.Procedural Posture & History:
Shares the case history with how lower courts have ruled on the matter.Case Key Terms, Acts, Doctrines, etc.:
A case specific Legal Term Dictionary.Case Doctrines, Acts, Statutes, Amendments and Treatises:
Identifies and Defines Legal Authority used in this case.
- The Case Brief is the complete case summarized and authored in the traditional Law School I.R.A.C. format. The Pro case brief includes:
Brief Facts:
A Synopsis of the Facts of the case.Rule of Law:
Identifies the Legal Principle the Court used in deciding the case.Facts:
What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case.Issue(s):
Lists the Questions of Law that are raised by the Facts of the case.Holding:
Shares the Court's answer to the legal questions raised in the issue.Concurring / Dissenting Opinions:
Includes valuable concurring or dissenting opinions and their key points.Reasoning and Analysis:
Identifies the chain of argument(s) which led the judges to rule as they did.
- The Brief Prologue closes the case brief with important forward-looking discussion and includes:
Policy:
Identifies the Policy if any that has been established by the case.Court Direction:
Shares where the Court went from here for this case.