The ban on ATM fees that went into effect last year in San Francisco attempted to prevent what was considered to be "double-dipping" by banks who charged non-members a fee for the consumer's bank as well as a fee for the bank providing the ATM service.
A U.S. District Court ruled that the ban on fees violated federal laws which provide banks with the right to charge the access fees. Lawyers representing the San Francisco voters vow to take the case to the 9th U.S. Circuit Court of Appeals, which has previously ruled that states have the right to regulate ATMs.
Fees currently being charged by the banks are being held in escrow in the possible event that a future court decision will rule against the fee structure.
Although the banks have won this round, the case may have far reaching effects on a national level as it makes its way through the court system.