As the industry's interchange blitz strode into full swing this week, CUNA and state leagues warned anew Monday about the bottom line impact on credit unions should the Durbin amendment be enacted.
One estimate cited a 90% cut in yearly interchange revenue on debit cards.
"If you're one of the few still not convinced that you and your credit union should be seriously involved in our nationwide grassroots effort, consider the estimates of at least $15 to $35 per debit card per year in lost revenue to offset fraud, data breaches, reissuance, etc." warned the Vermont Credit Union Association in a message to its members.
In explaining those numbers, the Vermont group noted that the Federal Reserve Board, under the proposed amendment on the reg reform package now before a Senate-House conference, would have the power to set interchange based on processing costs only.
"Processing is only about 10% of interchange," suggested the VCUA noting that the rest goes to cover fraud, reissuance, R&D, reward programs and for Vermont credit unions to continue debit cards an estimated $3.5 million in lost revenue will have to be made up somewhere.
The Missouri Credit Union Association citing the same $15 to $35 per card per year figure noted that merchants "want the government-set debit rate to only support the cost of moving a signal across the system."
In appealing for broad participation in CUNA's campaign, which includes a previously unscheduled June 8-9 Hike the Hill to Washington, the Texas League cited the "devastating impact on credit card programs."