ANZ on Wednesday successfully appealed against a landmark court ruling in 2014 that its $35 late credit card payment fees were illegal.
Three Federal Court judges agreed to overturn a finding by Justice Michelle Gordon that the fees were extravagant and unconscionable.
Law firm Maurice Blackburn, which brought the class action on behalf of customers, also lost its own appeal to the court.
It was unsuccessful in convincing the three judges that four other bank exceptional fees - honour, dishonour, over-limit and non-payment fees - should also be illegal and lead to compensation.
The result means a complete victory for ANZ and defeat for customers hoping for hundreds of millions of dollars in recovered fees.
It could also have ramifications for similar class actions against eight other banks including the Commonwealth Bank, Westpac and NAB, involving hundreds of thousands of customers.
Maurice Blackburn's head of class actions Andrew Watson said the law firm would appeal the latest decision in the High Court.
He said the firm had been battling for five years on behalf of ANZ customers to show that the fees were extravagant, unconscionable and unfair.
"That fight will continue as a result of today's decision," he told reporters outside the court.
"It will continue in the High Court."
Justice Gordon ruled in February 2014 that ANZ's $20-35 fees on late credit card payments were "unconscionable", being far in excess of the true cost to the bank of no more than $5.50.
The charges - made when a customer missed a minimum credit bill payment - represented a mark-up of up to 7000 per cent on actual costs of as low as 50 cents.
Mr Watson said the cases involving ANZ's rivals would be stayed pending another appeal, which litigation funders IMF Bentham said it would fund again.
