Interchange fees are paid by merchants when a purchase is made with a debit or credit card. This fee, paid through Visa back to the credit union allows the credit union to
- Offer debit cards to our members with no monthly or annual fees, and
- Allows the credit union to offer all of the security and protection for our members.
The merchants' ability to accept a debit card makes payment processing very convenient and eliminates a lot of risk associated with other form of payment. With debit cards, the financial institutuion is taking on the majority of the risk.
A verison of the regulatory reform bill was passed by the House this year, and sent to the Senate to pass their version. The Senate's version was passed with amendment related to interchange. No hearings or debates were held to discuss this amendment. The House version did not include this amendment.
This amendment will not help the consumers. It will dramatically alter the electronic payments system. Many small financial institutions, (credit unions and community banks) may find it difficult to continue to offer debit cards, or be forced to charge a montly and/or annual fees for this service.
Help us defeat this amendment to the Regulatory Reform Bill by calling our elected officials and ask them to vote NO on this amendment.
Please call Toll Free 877-223-5275 |
