Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CO-OP CUs should convert ACH to debit
RANCHO CUCAMONGA, Calif. (4/4/08)--In a tight economy, credit unions should convert their cash, check and automated clearinghouse transactions to debit transactions to increase revenue, says James Hanisch of CO-OP Financial Services. Credit unions can earn revenues on interchange fees when a transaction is made. “Generally, there is no interchange income to credit unions on cash or check transactions,” Hanisch said. He is executive vice president of network operations and chief administration officer with CO-OP. Debit transactions, both signature and personal identification number-based, earn revenue. The amount depends on the merchant, but the range is “realistically 25 cents to 40 cents on average” per transaction, he said. “CO-OP for many years has encouraged credit unions to market to their members the benefits of using debit cards,” he said. Credit unions looking to convert their transactions to debit will have to invest in marketing and behavior change for their members. “They should encourage their members to pull cards instead of cash,” he said. Cash still accounts for roughly one-third of all transactions, Hanisch said. Any transaction with income is better than a transaction that doesn’t generate income, he concluded.
Other Resources

RSS print
News Now LiveWire
Of $1.3B in payments through mobile devices, 90% occurred at @Starbucks stores http://t.co/MN49JR1NXK
13 hours ago
.@LoveBethpage 1st to launch mobile debit/credit card control from @COOPFS http://t.co/kuq7onGuai
14 hours ago
A booming W Okla county gets its first #creditunion @TheHEFCU See #NewsNow http://t.co/svTyMnms0X
17 hours ago
Mortgage interest rates continue slide in September @FHFA http://t.co/agU9RJW5Kq
19 hours ago
Reimagined branches shift to member, not #creditunion, needs: @cunacouncils white paper http://t.co/lN2mu0IVar
20 hours ago