WASHINGTON – NACS, the Food Marketing Institute (FMI) , the National Restaurant Association (NRA) and the National Retail Federation (NRF) filed a brief in support of a district court judge’s decision that overturned the Federal Reserve’s swipe fee regulation, the Wall Street Journal reports. U.S. District Court Judge Richard Leon ruled over the summer that the Federal Reserve had misapplied Congress’ intent when it implemented required swipe fee reforms.

The plaintiffs in the case argue that the Fed’s regulations created a big loophole that would only make one processing network available for many transactions, instead of allowing for competition in processing networks. “We want the Fed to redo the mistake that they made,” Douglas Kantor, an attorney representing some merchants, including NACS, in the case. Other retailers include the National Restaurant Association, 7-Eleven, Starbucks and Burger King.

The Federal Reserve interpreted the rules to limit debit card fees at around 21 cents per transaction, much lower than the 44-cent average previously. However, merchants pointed out that the Fed jettisoned an earlier provision that would have lowered the per-transaction fee to as little as 7 cents. 

The Federal Reserve has until December 4 to file its brief. Oral arguments before the appeals court will take place January 17.