LAS VEGAS — The debit card interchange cap mandated by the DoddFrank Act's Durbin Amendmentwill cost the $11.5 billion BECUbetween $35 million and $45 million in 2014, a BECU executivesaid.
|The 826,000-member, Tukwila, Wash.-based institution becamesubjected to the cap in the third quarter of 2012, its assetsexceeded $10 billion. Debit card issuers with less than $10 billionin assets are exempt from the cap.
|Speaking as part of a panel at the American Credit UnionMortgage Association 2013 Annual Conference, BECU Vice President ofTreasury Mike Quamma said his credit union's drop in interchangeincome is so significant, the credit union must consider it whenpricing mortgages and other loan products.
|Quamma later said if the Federal Reserve redrafts the regulationin a way that sets a lower cap, say $0.12 per transaction, BECUcould see an annual drop of income in the range of $55 million.
|“Right now we have a lot of good numbers so if this has tohappen, it's better than it happen now than at another time,”Quamma said. “But obviously it's not something we can ignore.”
|U.S. District Court Judge Richard Leonoverturned the current debit rule in response to litigation fromretail groups who believe the cap was too high and directed theFederal Reserve to write a new rule. However, Leon's orders torewrite the rule were suspended pending appeal.
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