Interchange Pinch Felt by Many CUs
- CUNA survey suggests PIN interchange dropping.
- Signature interchange stable, volume increasing.
- More data necessary to assess whether or not a trend.
A CUNA survey of some of its member credit unions suggests credit unions with less than $10 billion in assets have begun to take a hit to their debit card interchange even though they were not supposed to feel the impact of a debit interchange cap.
Hampel said the association anticipates releasing a full report about the study in the second week of January.
The Durbin amendment’s requirement that debit card issuers have two unaffiliated debit processing networks available for each transaction might mean have dropped PIN interchange because it means that PIN debit transactions are now being routinely routed through the network that brings the least interchange. Another possible cause for the drop may lie in an industrywide decline in PIN debit rates as card processing networks begin to compete more vigorously for retail clients.