Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

ATMIA Expresses Concern On Overturn Of Fed Interchange Rule
SIOUX FALLS, S.D. and NEW YORK, N.Y. (8/8/13)--The ATM Industry Association (ATMIA) has joined the ranks of those concerned about the impact of a recent court decision that overturns the Federal Reserve Board's rules on debit fee caps and transaction routing choices.
ATMIA warns that uncertainty introduced by the federal court ruling could derail progress that has been made toward migration to a Europay-MasterCard-VISA (EMV) strategy to reduce fraud losses and to meet the liability-shift deadlines put in place by the major card networks.
The July 31 U.S. District Court for the District of Columbia decision, said David Tente, executive director USA for ATMIA Wednesday, "could completely stall progress toward development of the debit solutions necessary for the vast US EMV migration.
"With one liability shift passed and others looming in the near future, we're already seeing that the court's action has created a heightened level of confusion in the industry."
Tente said the ATM industry suddenly finds itself dealing with a court decision that "has just thrown away the rules upon which we have based all of our work for the past year.  Work that was necessary because the EMV spec being dictated by the global networks does not fit well with the U.S. payment system as a whole.  And meanwhile, the industry still faces the same unrealistic liability shifts."
The Credit Union National Association has warned that the district court ruling will have "a potentially devastating impact on the ability of small debit card issuers, particularly credit unions, to continue offering this vital payments service to their members and customers."

CUNA currently is meeting with a broad coalition of finance industry representatives to chart a response strategy and approach to the court's decision. CUNA also is contacting Federal Reserve staff to detail the negative impact of the ruling on credit unions and other small card issuers as that agency considers an appeal.

"While the Fed will independently make its decision whether or not to appeal, CUNA will make sure that Fed attorneys are aware of the potential negative impact of this decision on credit unions," CUNA General Counsel Eric Richard has said.


News Now LiveWire
.@CUNA says new House bill is "further evidence" of lawmakers' interest in how @TheNCUA uses its funds from CUs. See News Now Monday.
5 hours ago
.@MECreditUnions announces winner of @YoungFreeME #SoundOff contest. @Sassquatch_Band will play Old Port Festival in June @PDD_Downtown
1 day ago
House Financial Services Com. to hold March 3 hearing to receive the semi-annual report of @CFPB Director Richard Cordray.
1 day ago
Rep. Jeff Miller (R-Fla.) re-introduced bill to ease veterans' access to loans for #smallbusiness purposes from a #creditunion (HR 1133)
1 day ago
You can get your subscription to @cuna 's free, daily, online #creditunion #news service News Now here:
1 day ago