The credit union movement received better-than-expected news onJune 29 when the Federal Reserve Board announced its rules toimplement the Durbin amendment concerning debit card interchange.For credit unions under $10 billion in total assets, interchangerates will show little or no decline in 2011, and this willprobably be true in the first half of 2012 as well. It appears thatall networks will implement a two-tier system keeping rates nearthe 44 cents per transaction average for exempted credit unionsduring this time.

Government intervention has created a confusing regulatoryenvironment, and yet, there is a clear marketing opportunity forcredit unions. All the large banks have either re-priced theirchecking accounts or will shortly. There is a window of competitiveadvantage for credit unions under $10 billion to move market share.It won't last forever, so take advantage of it. Carpe Diem – now isthe time for credit union marketers to seize the day.

There are several key marketing initiatives that credit unionsshould deploy as a result of the Federal Reserve Boardannouncement.

Get on top of your portfolio. One of the best ways for you toexploit today's market opportunity is to mine for really good data.Portfolio management tools will help you understand how yourmembers are using your payment cards and how usage is trending. Forexample, you can identify members who are only using their creditunion debit cards for small-ticket purchases and offer incentivesfor large-ticket transactions, which in turn will increase usageand profitability.

Good data will also help you understand what your members' usagemix is right now between PIN and signature debit. This isimportant, because the big bank cap on interchange, which isirrespective of authorization method, will cause more transactionsto be processed as PIN transactions over time. If this comes topass, consumer behavior may be permanently changed, creatingadditional downward pressure on interchange. As your marginsdecrease in the long run, it is going to be even more critical foryou to carefully manage that PIN and signature mix.

Of course, you want to give your members every means ofaccessing their accounts possible, but you need to be aware of whatthe margins are on the different types of transactions. That'swhere good data mining comes into play, and this will pay off inwell-informed decisions as you execute your marketing gameplan.

Stress the credit union difference. Credit unions came intoexistence to improve the financial lives of their members, many ofwhom have historically been people of modest means. Betterrates on loans, fewer fees and more personalized services havebeen, and will continue to be, a differentiator for credit unions.There has never been a better time to market this fact to potentialnew members and to inactive existing members.

Stress acceptance of credit union-issued credit and debit cards.With the many landmark and complex changes in the regulation offinancial institutions, there may be some uncertainty among yourmembers as to whether or not their credit union-issued cards willbe accepted at the point of sale. In fact, the banks may imply thisin their marketing programs. Credit unions should be educatingmembers, letting them know that their cards will be accepted bymerchants just as before, and that this is written into the FederalReserve Board's rules.

Take advantage of the two other exemptions. In addition tofinancial institutions with less than $10 billion in total assets,there are two other “exempt parties” that credit unions canparticipate in to maximize their marketing advantage. The twoadditional exemptions may be opportunities for you – debit cardsprovided under government payment programs known as electronicbenefit transfer, and reloadable prepaid cards redeemable atmultiple, unaffiliated merchants. Both of these productsfurther expand a credit union's efforts to serve underservedconsumers who might get left behind by the big banks.

Grow your checking account base. Checking accounts are thesurest way to convert inactive members into members who look to youas their primary financial institution. Free checking is alive andwell at credit unions, while banks have killed it off. Here is areal opportunity for credit unions in midst of a crisis for bigbanks.

To jump start this growth, consider implementing rewardschecking accounts and offering the richest benefits to members whomeet your criteria for direct deposit, online bill payment,receiving electronic statements instead of paper statements andcheck card or debit card activity.

You haven't lost any interchange income yet, By marketing thecredit union difference today, protect your profitability for thefuture. 

Caroline Laneis senior vice president of business development and marketing atCO-OP Financial Services.