Corner Post Decision

"We are deeply disappointed with the court's decision in the Corner Post case but not entirely surprised. From its inception, the Durbin Amendment imposing government price controls on debit cards has been flawed policy that undercuts consumers by making basic banking services like free checking and other consumer benefits such as rewards impossible for banks to offer. Even the judge noted the flaws in the original Durbin language.

"This ruling only harms consumers even more by prohibiting today's government mandated interchange fees from supporting fraud prevention and enhanced data security. It allows retailers and merchants to effectively benefit from the superhighway that is America's debit payment system without having to cover any of the costs needed to maintain, protect and upgrade that system.

"We look forward to the Federal Reserve vigorously appealing this outcome as it indicated it would during oral arguments, so our members can continue to offer consumers the safe, secure and convenient 24/7 payment system they have come to expect in this country. In the meantime, retailers and merchants should stop doing everything they can to undermine that system just to pad their profits."

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The American Bankers Association is the voice of the nation’s $24.5 trillion banking industry, which is composed of small, regional and large banks that together employ approximately 2.1 million people, safeguard $19.5 trillion in deposits and extend $12.8 trillion in loans.

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