Debit Day Arrives: Interchange Data Become Important in a Post-Durbin World
As the Oct. 1 deadline for the interchange cap to go into effect fades into history, consultants who work with credit unions on managing their debit programs are urging CUs focus more attention on their debit programs.
The consultants say CUs need to do this for their own records but also to help industry and government analysts better judge the overall costs of the regulation.
Representatives of two of the three credit unions that face that cap reported facing loses from the millions of dollars to the tens of millions of dollars but have pledged not to increase fees on their members to soften the drop.
But many smaller credit asset credit unions are not as aware of their debit programs, what income they bring in and how much they possibly stand to lose under the indirect impact of the cap.
Two of the three credit unions that are not exempt from the cap on debit card interchange say they have no plans to charge their members additional fees or take other steps to make up the loss.
“For a lot of financial institutions, the money has to come from somewhere,” he said.
Leanne Phelps, senior vice president of card service programs at State Employees', said her credit union also expected to take a big loss from the cap but it also would not add fees to its existing products or services or raise the fees it already charges.