X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Speaking on a press call sponsored by the Electronic Payment Coalition, an industry lobbying group put together to address interchange and other card payment issues, Cheney quoted industry estimates that the cut could drop debit interchange between 70% and 90%. The Federal Reserve’s proposed rule on debit interchange capped debit interchange at no more than 12 cents per transaction. This would be a flat fee whereas debit interchange is currently calculated as a percentage of a transaction, often around 1%. Hence a $50.00 debit card purchase now makes an issuer 50 cents would only make 12 cents.

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?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.