RANCHO CUCAMONGA, Calif. (6/18/09)--CO-OP Financial Services is providing $30,000 on behalf of its member credit unions to the Electronic Payments Coalition (EPC) to support its efforts to inform legislators surrounding interchange while opposing changes to the current interchange fee structure. EPC is a Washington, D.C.-based organization funded by more than 60 credit union, bank and payment systems organizations. The organization is leading the opposition against legislation proposed on interchange fees, such as a bill proposed by Rep. John Conyers (D-Mich.) that would allow merchants to negotiate credit card transaction fees with financial institutions. Interchange revenue is derived from the payment by a retailer’s bank to a member’s credit union when the retailer chooses to accept that member’s credit or debit card for payment. It provides revenue for credit unions to partially reimburse merchants as card issuers for the activities they perform and the risk they take on each transaction, CO-OP said. If the interchange fee is lowered, smaller financial institutions such as credit unions would have to either raise fees or stop offering credit and debit cards, said CO-OP CEO Stan Hollen. “Ultimately, of course, the consumer will be harmed in terms of restricted payment choices,” he added. The Credit Union National Association also supports EPC. CO-OP Financial Services is a credit union service organization that offers ATM network access, debit processing, ATM processing, shared branching, check imaging and mobile payments.