A March 4 CU Times opinion article refers to the additional value accorded credit unions by participating in an ATM/POS "credit union owned network" and suggests that credit unions will receive their highest value by being part of this ATM/POS network. DCCU's history is somewhat different.
When DCCU realized that ATM/POS network interchange varied dramatically among networks, we conducted an in-depth network analysis. From that analysis, we determined to discontinue participation in the "credit union owned network" in January 2006. We moved all POS transaction routing to Visa's Interlink network. Our interchange fee income increased 27% from what we had been experiencing with sales increasing only a modest 8%. Bottom line is this represented approximately $100,000 per month income increase over what we had been realizing from the previous network.
My suggestion to all credit unions is to do the math yourselves. We have been pleased with the services we receive from Interlink and especially with the increased interchange income.
Rick Foley
CEO
Delta Community Credit Union
Atlanta
MSB Conversions a Certainty
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