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News Now

CU System
National media cover Cheneys interchange comments
WASHINGTON (12/21/10)--Credit Union National Association (CUNA) President Bill Cheney's comments on the impact of the debit card fee cap in the Federal Reserve's interchange proposal were picked up in dozens of national, regional and local media, including CBS News.com, ABC News.com, CNBC.com, Bloomberg, Businessweek and Huffington Post. In the Associated Press story, Cheney noted that members of credit unions and customers of small banks may feel a negative impact from the regulation even though smaller institutions are left out of the law and won't face a cap on their fees. "The legislation says we are carved out, but there's no real enforcement provisions," Cheney said. While a two-tier system with higher interchange rates for smaller institutions may result from the regulation, that creates a new set of concerns, he said. One fear is that if small credit unions and banks charge higher fees, merchants may shun their cards. If small institutions find they have to shift to the lower fees, the revenue loss would be significant, and would have to be made up from member/customers. "The last thing that credit unions want to do is raise their fees," he said in the article. The Fed's proposal caps the interchange fees at 12 cents per transition, which it says would enable retailers to pass an annual savings of $10 billion to $13 billion to consumers. But card networks and financial institutions say that retailers will pocket the savings. In addition to major markets, Cheney's comments appeared on Minnesota Public Radio, New York-based Pantagraph.com, Telegram.com, The Star Press, Mohave Daily News, Lubbock Online, The Sun News, The Springfield News-Leader, the Sun-Sentinel, Hartford Courant, the Anniston Star, Morningstar and more. The stories were also picked up in Canada on Yahoo! and in India.
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