TCF National Bank filed a complaint in the United States District Court for the District of South Dakota to challenge the constitutionality of the Durbin Amendment.

The Durbin Amendment was included as Section 1075 of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010, Public Law 111-203. The amendment directs the Board of Governors of the Federal Reserve System to issue standards setting the maximum debit card interchange rates that banks with more than $10 billion in assets may receive or charge. The Board is directed to set the interchange rates by reference to the incremental costs of authorizing, clearing, or settling debit card transactions.

TCF argues that the incremental costs that the Board is to consider when setting TCF’s interchange fee rate constitute only a small fraction of the costs that TCF incurs in creating and administering its debit card programs, and TCF takes issue with the fact that the provision is limited to banks with assets of $10 billion or more. TCF argues that the Durbin Amendment is discriminatory, violates its right to equal treatment under the law, and deprives it of its property without due process or compensation.