Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CUNA Contacts Fed For More Interchange Survey Info
WASHINGTON (5/24/13)--While a new Federal Reserve survey claims the interchange fee cap exemption is working for small issuers, details about credit unions' experience in this area are not fully reflected and the Credit Union National Association is talking with the agency to find out more about the survey results, CUNA President/CEO Bill Cheney said Thursday.

CUNA continues to closely monitor the impact of the interchange cap and whether market forces appear to drive down the fees that the exemption for smaller institutions is intended to protect.

"These results are welcome in the short term for credit unions across the country, but we continue to have grave concerns about debit interchange income for credit unions over the longer term, and question whether these results will stand over time," Cheney said.

The information was gathered from survey responses from the payment card networks and 102 small depository institutions. CUNA has reached out to the Fed to clarify how many of these respondents were credit unions, since the number is not apparent from the information released.  The Fed had asked 1,000 small financial institutions to take part in the survey.

The Fed's final rule implementing the interchange law capped large issuer debit interchange fees at 21 cents. An additional five basis points per transaction may be charged to cover fraud losses, and an extra penny may be charged by financial institutions that are in compliance with established fraud prevention standards. Most credit unions are exempt from the fee cap.

Information on network exclusivity provisions and compliance costs is also included in the Fed report.

For the full Fed release, use the resource link.

RSS





print
News Now LiveWire
RT @CUEscan: Branches Will Be the Cornerstone of Growth http://t.co/fVqPPaGeVL http://t.co/xxMyKGQMrl
29 minutes ago
RT @asmarterchoice: According to @Bankrate study, customers more likely to find FREE checking at #Creditunion than a bank! http://t.co/ntCb…
34 minutes ago
Ditch monthly subscriptions to save $$, @YoungFreeMI Fielder tells @freep http://t.co/TFnsps4Dui #ASW2015
53 minutes ago
.@federalreserve extends comment period for capital surcharges on systemically important U.S. bank holding cos. http://t.co/MOJJBn9DfA
2 hours ago
~40M tax refunds worth $125B issued as of Feb. 20 @IRSnews reports. Average refund=$3,120 http://t.co/VgcLs6chhq
2 hours ago