RANCHO CUCAMONGA, Calif. — CO-OP Financial Services has formally joined in the Electronic Payments Coalition in the fight against the legislation which would sharply impact card interchange rates.
CO-OP, which is the parent organization for the popular CO-OP Network, has been a long-time member of the Electronic Funds Transfer Association, which has also been involved in the fight against H.R. 5546, the Credit Card Fair Fee Act of 2008.
The legislation would mandate a negotiation on card interchange rates and impose a federally mandated rate should such negotiations fail. Similar legislation in other countries, such as Australia, have moved cards from being a net plus on credit union balance sheets to being a loss.
"It's vital that credit unions, and the financial industry as a whole, be aware of and become involved in any legislation such as H.R. 5546 that will negatively affect their members," said CO-OP Financial Services CEO Stan Hollen.
"CO-OP is committed to the growth of a safe and secure electronic payments system that benefits all participants," he said. "At a time when economic conditions are straining earnings at virtually all credit union, a material decline in interchange income would likely result in reduction or elimination of rewards programs and increased fees to members."
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