Even if the Federal Reserve Board crafts debit interchange regulations that are careful to exempt credit unions, CUs will still lose some debit interchange income from unfavorable network changes.
That is one of the conclusions of Interchange Regulation: Implications for Credit Unions, a paper the Filene Research Institute released today.
"Institutions with less than $10B in assets may be shielded from the 'reasonable and proportional' interchange standards, but they will still be subject to 'multi-homing'-the requirement that each card be capable of processing a transaction on more than one network," wrote report author Adam J. Levitin, an associate professor of law at Georgetown University Law Center in Washington, D.C. "Competition among networks will allow merchants to route transactions to the network that saves them the most money, which will push down income for issuers," he added.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
