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Meanwhile, three small New York businesses filed
suit in April 2026 accusing the two card brands of
price fixing, and they've taken issue with many of
the rules addressed in the 2024 settlement, including
surcharging. The complainants, two restaurants and a
hair salon, argue that the 2019 settlement applied only
to damages suffered through January 25, 2019. They're
seeking class action status on behalf of all merchants
that have accepted Visa and Mastercard since January
2019.
Debit cards not immune
Lawsuits against the card brands haven't been limited
to credit cards. In 2024, the DOJ filed a new lawsuit
against Visa alleging it operates an illegal monopoly
over the U.S. debit card network and maintains its
market dominance through restrictive agreements
with merchants, FIs and financial technology firms.
The case, still in the discovery phase, is expected to
involve years of legal wrangling.

Meanwhile, dueling judgments were handed down
last year by judges in Kentucky and North Dakota
regarding the cap on debit interchange that the
Federal Reserve was instructed to implement by the
Durbin Amendment to the 2010 Dodd-Frank Act. A
federal district court judge in Kentucky upheld the
cap, asserting the Fed rightfully balanced competing
interests in setting the cap, which stands at 21 cents
plus 5 basis points, with a 1 cent adjustment for fraud
prevention initiatives.

Linney's Pizza in Frankfort, Ky., argued that the costs
the Fed considered when setting the cap were contrary
to the instructions set forth in the Durbin Amendment.
Not so, said the judge in that case.
Roughly 1,200 miles to the west, a U.S. district
court judge in North Dakota ruled in 2021 that the
Fed misunderstood instructions set forth in the
Durbin Amendment, siding with a truck stop and
convenience store that had challenged the Fed's cap-
setting regulation. While Congress gives agencies
"discretionary authority" for carrying out laws, they do
not enjoy carte blanche authority, District Court Judge
Daniel M. Traynor for the District of North Dakota
ruled.

That case made it to the Supreme Court, which sent the
case back to the North Dakota District Court, which
struck down the Fed's 21 cent debit cap in 2025. As
lawsuits, legislative battles and regulatory challenges
continue, the interchange debate shows little sign of
nearing a final resolution.

Patti Murphy is senior editor at The Green Sheet, president of
ProScribes Ink (www.proscribes.net) and self-described payments
maven of the fourth estate. Her Today in Payments reports are a
regular feature of the Merchant Sales Podcast.

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