July 31 - The American Bankers Association has released the following statement by Frank Keating, ABA president and CEO:
“We’re deeply disappointed in today’s court decision, which will harm banks of all sizes and make it more difficult for institutions to serve their customers. We question the court’s analysis that the statute doesn’t permit all the costs associated with an individual transaction to be part of the allowable costs. From our perspective, that’s a plain misreading of the statute.
“The price controls enacted as a result of the Durbin Amendment served one purpose – further lining the pockets of our nation’s big-box retailers at their own customers’ expense. It was – and still is – all about trying to help retailers increase profit margins while providing no real benefit to consumers. All this as retailers continue to enjoy the benefits of debit cards – from faster checkout to lower fraud costs – without paying for it or keeping their promises to U.S. consumers.
“We urge the Federal Reserve to pursue all legal means to mitigate the harm this decision will cause to consumers, community banks and all institutions that provide financial services to local communities. The Durbin Amendment and the court’s interpretation will have disastrous consequences for the institutions affected and the communities they serve. This result must be reversed.”