WASHINGTON, D.C. (Aug. 12, 2025) – NFIB commends the recent decision in the case Corner Post, Inc. v. Board of Governors of the Federal Reserve System at the United States District Court for the District of North Dakota. The case concerns the Federal Reserve’s Regulation II, which allows banks to extract exorbitant profits from small businesses through debit card swipe fees. The court vacated the rule, concluding that the Federal Reserve considered factors beyond the authority granted to it by Congress. Unfortunately, the court paused its holding from taking effect while the government appeals.

“NFIB has been very vocal about the disproportionately high cost of swipe fees for small, independently owned businesses,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “With cash payments becoming increasingly less common, these skyrocketing fees place an immense burden on small retailers, who already operate on narrow profit margins. Congress clearly outlined what the Federal Reserve should consider when setting the permissible amount of swipe fees and small businesses are relieved that the federal district court recognized the agency’s abuse of authority.”

NFIB filed an amicus brief in the case with the Retail Litigation Center, Inc. and Merchant Advisory Group arguing that Regulation II exceeds the Board’s statutory authority, contradicts the Durbin Amendment, and imposes massive and improper costs on retailers and small businesses nationwide.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.