Debit Day Arrives: CUs Take On Banks to Build Debit Market Share
Now that the deadline for the Durbin amendment interchange cap to take effect has passed, financial institutions are continuing to develop ways to offset lost interchange revenue. One solution? Raise fee income by making debit and ATM transactions more expensive for consumers.
As banks begin eliminating free checking, increasing their debit transaction fees, raising their ATM surcharge fees and cutting their debit rewards programs, many credit unions are seizing an opportunity. They are promoting the benefits of their debit programs, hoping to lure consumers away from banks and increase their market share.
Isaacs said if the CU’s debit program income does become threatened, the CU would most likely market its credit card program. She noted that generally speaking, members don’t favor checking account fees, as small as they may be.
“We want to hold out as long as possible before adding fees to our debit and checking products,” Isaacs said. “Once we get to the point where we’re trying to limit our debit transactions, then it’s a whole different ball game.”