CBA Statement on U.S. District Court’s Ruling to Vacate Debit Interchange Rule

WASHINGTON, D.C. – Consumer Bankers Association (CBA) President and CEO Lindsey Johnson released the following statement in response to the Federal District Court for the District of North Dakota ruling against the Federal Reserve Board’s 2010 debit interchange rule:

“Today, a single federal court threatens to limit access to banking services for millions of Americans. When the Durbin Amendment was passed in 2010, retailers promised to pass cost savings on to consumers—we now have 14 years of data that clearly shows that did not happen. Further, bipartisan research has shown that the government-imposed price caps under the Durbin Amendment led to material consumer harm: fewer free checking options, higher costs, and increased exposure to fraud—with consumers on the margins hurt the most.

“Now, by disregarding the plain text of the law, the court’s ruling would push those caps even lower, ignoring the very real and rising costs of fraud in today’s economy.

“Interchange doesn’t just benefit banks and consumers—interchange ensures merchants of all sizes can rely on a fast, ubiquitous, and safe payment network that allows them to accept payments from customers around the world.

“Using the courts to try to rewrite that bargain may serve short-term interests, but it comes at the expense of consumers and the stability and fairness of the entire system. We look forward to the subsequent appeal of this decision.”

CBA Advocacy

• To read a blog post on how further restrictions on debit interchange fees would harm consumers, click HERE.
• To read what thought leaders are saying about how decreasing debit interchange fees would harm minority and low-to-middle income consumers, click HERE.
• To read a joint trades letter to the Federal Reserve Board regarding proposed changes to debit interchange fees, click HERE.