The year 2010 will be remembered as when the federal government got involved in how much interchange banks and credit unions earn on their debit card transactions.
First Data's initial statement on the Federal Reserve's proposed debit interchange rule did not mention establishing a debit interchange schedule for small debit card issuers.
The impact of the Federal Reserve's proposed rule on debit interchange could be a "drastic" cut to CU debit card income, according to CUNA CEO Bill Cheney.
Contrary to the assurances of Illinois Senator Richard Durbin (D), the interchange cap which flows from the amendment that bears his name will reduce credit union income from debit card interchange.
The Durbin Amendment to the Dodd-Frank financial reform act will likely cut credit union debit card income in the short term but may also spur further innovations in the payments industry.
House and Senate conferees will tackle the issues of greatest interest to credit unions in the financial overhaul when they meet later today.
The U.S. Government could save between $36 million and $39 million in interchange fees annually if it had the right to negotiate for better terms, according to a Treasury Department report.
Damon Patrick Toey, 28, the last currently captured hacker who took part in the majority of major card security breaches over the last 10 years, has been sentenced to five years in prison.
The last computer hacker associated with the ring that stole millions of credit and debit card numbers from retailers and cost card issuers tens of millions of dollars received five years in prison.
Damon Patrick Toey, 25, the last of the U.S. based partners of computer hacker Albert Gonzalez faces a judge for sentencing today in Boston. The U.S. Attorney for the District of Massachusetts has recommended a sentence of six years.