CO-OP comments on overturn of interchange ruling

The U.S. Court of Appeals today upheld the Federal Reserve Board’s implementation rules of the Durbin Amendment, rules that had been overturned by a lower court last year.

CO-OP Financial Services is, of course, delighted with the decision, having joined with CUNA in an Amicus Curiae (“Friend of the Court”) brief in support of the appeal of the lower court’s decision.

Scanning the decision, we could not be more in agreement with the three-judge panel who wrote “In sum, far from summiting the steep hill, the merchants have barely left basecamp. We therefore defer to the Board’s reasonable interpretation of section 920(b) and reject the merchants’ challenges to the anti-exclusivity rule….For the foregoing reasons, we reverse the district court’s grant of summary judgment to the merchants and remand for further proceedings consistent with this opinion.”

Much of the attention, of course, focused on the challenge to the $0.21 cap on interchange fees, paid by retailers on debit card transactions, which now emerges intact.

However, we take particular satisfaction with today’s ruling against the District Court’s 2013 opinion that credit unions would have to establish multiple relationships for both PIN and Signature debit networks. This would have impacted all of our clients, adding costs and potentially reducing interchange revenue. Today’s ruling on this matter is truly a significant victory for the credit union movement.

The Appeals Court did not put much stock in the merchants’ arguments. However, given the amount of money involved, there will almost certainly be an appeal to the Supreme Court.

We will continue to monitor these developments closely on your behalf, and work with industry trade organizations as appropriate on this important litigation.

Thank you for your business.

About CO-OP Financial Services
Based in Rancho Cucamonga, Calif., and founded in 1981, CO-OP Financial Services is the nation’s largest credit union service organization in terms of number of credit unions, assets and members. The company helps credit unions thrive by providing products and services that make it more convenient for members to do business with them. With a motto of “Be There. Be More,” CO-OP’s products fall into three business lines, including “Locations,” (ATM, shared branching and call center services); “Card Payments” (debit and credit processing) and “Mobile/Virtual” (mobile, online, check imaging, bill pay services). To learn more visit

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