Five years after the introduction of the Durbin Amendment, which put a cap on the debit fees financial institutions could charge merchants, the Federal Reserve is now explaining part of how it came up with its controversial $0.21-plus-0.05%-per-swipe limit.

The explanation comes at the behest of a U.S. District Court as part of a ruling on a suit in which the National Association of Convenience Stores claimed that, among other things, the Fed used flawed methodology to calculate the fee limit.

According to its eight-page explanation issued yesterday, the Fed is standing by its math.

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