TALLAHASSEE, Fla. -- Credit Union 24, one of two nationwide credit union-owned ATM networks, has cut prices and raised interchange rates for its participating credit unions.
The overhaul of its pricing and fee structure came as a result of CU24's move to Fifth Third Bank as a switch provider combined with internal efficiencies, explained CU24 spokesman Sean Dempsey.
Under the new pricing, the network expects participating credit unions to gain from an average 38% increase in interchange income, while switch fees and membership fees drop by an average of 57% and 31%, respectively.
The new pricing, which goes into effect on Feb. 1 of next year, will affect all participating credit unions regardless of size.
"I see our new pricing as a reward for the loyalty our participants have shown us, and as an invitation to credit unions who aren't yet aware of the value of Credit Union 24," said Jim Park, CEO of the ATM network. "Boosting income and cutting expenses for credit unions allows us to compete with the large, publicly-owned networks, and, when you factor in a couple extra cents per transaction from our patronage dividends, it clearly positions Credit Union 24 as the best deal in credit union EFT."
Credit Union 24 has been criticized in some quarters for contracting with a bank for the switching service, but has responded that Fifth Third offered the best deal for the network's member credit unions.