NEW ORLEANS– The U.S. Court of Appeals for the Fifth Circuit has upheld a Texas state law that prohibits merchants from imposing a surcharge on a buyer who uses a credit card. Credit unions had supported the prohibition.
"This is a great win for credit unions, and at CUNA we are proud to have been involved in this suit as part of our unwavering support of our members in every possible venue nationwide, including the courts,” said Ryan Donovan, CUNA’s chief advocacy officer. “We applaud the court’s decision."
CUNA filed an amicus brief in the case in August 2015 arguing that allowing merchants to add additional surcharges – known as interchange fees – to credit card transactions would allow them to receive the substantial value of participating in the credit card system, while passing costs along to consumers and financial institutions