Flawed debit card swipe fee reform regulations issued by the Federal Reserve have allowed big banks to continue charging unjustifiably high swipe fees and discouraged price competition among credit card networks, according to a lawsuit filed in federal court today by NACS and NACS member Miller Oil Co., among others.

The regulations, which took effect October 1, have led to an increase in debit card swipe fees in some cases, according to the plaintiffs: NACS, Norfolk-based Miller Oil Co., the Food Marketing Institute, the National Retail Federation and Boscov’s Department Store.

“The Federal Reserve missed an opportunity to give consumers the relief that they deserve and this needs to be corrected,” said NACS President and CEO Hank Armour.

This week Senators Robert Menendez (D-NJ), Majority Leader Harry Reid (D-NV), Senator Richard Burr (R-NC) and Senator Saxby Chambliss (R-GA), introduced companion legislation to H.R. 1380, the “Alternative Transportation to Give Americans Solutions Act (NAT GAS ACT) of 2011” to encourage the use of domestic natural gas to fuel vehicles. A glaring difference within the Senate bill is the proposed “pay for” which would fund the new tax credits for natural gas vehicles and infrastructure by charging a temporary user fee on the sale of liquefied natural gas and compressed natural gas sold for use as a motor vehicle fuel. The House version of the T. Boone Pickens plan, H.R. 1380, has the bi-partisan support of 181 cosponsors.

The bill would provide tax credits for the purchase of vehicles: $7500 for car (8500 lbs), $16,000 for 14,000 lbs, $40,000 for 26,000 lbs, and $64,000 for more than 26,000 lbs. It would also provide a producer credit for vehicles fueled by NG or LNG of 10 percent of the basis or $4000, with an aggregate credit of $200 million, and pump installation credits of 50 percent of the cost -- up to $100,000.