In the five years since the Durbin Amendment to the Dodd-FrankAct took effect, credit unions have been stymied in its efforts tomaintain its interchange income.

Yet, for most credit unions, it's the amendment's unpredictableand potent aftershocks that are triggering the most anxiety, asnoted by CUNA and other organizations.

Specifically, credit unions are now burdened with the task ofkeeping up with interchange regulations — rate adjustments, ongoinglegal challenges, and other developments — without knowing when thebleeding will stop.

The Electronic Payments Coalition estimates that retailers havebrought home $36 billion in additional profits since the DurbinAmendment price controls went into effect, and are expected to makebillions more. In the meantime, credit unions have had to foot thebill. Federal Reserve data reveals that the average interchange feefor exempt issuers has fallen 16.6% for PIN transactions and 5.2%for signature transactions. Countless other studies performed bycreditunion think tanks and industry associations have underscoredthe reality of the financial losses.

Keeping up with interchange is especially burdensome for thesmall to midsize institutions already grappling with otherchallenges — such as an ever-changing lending environment and theneed for upgrade to EMV standards.

While the fight to modify interchange regulations through billssuch as H.R. 5465is ongoing, credit unions have been forced to exist insurvival mode. In addition,as multiple credit union organizationshave noted, generating noninterest income through paymentactivities such as interchange, is critical to credit unionsurvival!

Considering this, how do credit unions continue to navigate apost-Durbin Amendment reality while controlling their bottom line –when they can no longer control merchants' routing preferences?

As every credit union's roadmap to sustainability and growth isdifferent and the answer isn't so simple.

For this reason, one option credit unions should consider, isaligning with a third-party network partner, which can help aninstitution navigate existing POS interchange regulations ascompetition grows, technology morphs, and regulations evolve.

There are many potential benefits to this approach. For example,the right network partner can serve as a consultant by helping acredit union streamline or expand payment solutions — mobile, debitcard, credit card, etc. — to improve an organizations' operatingcosts, and bolster member satisfaction.

In addition, the right credit union network partner iswell-versed in the types of scenarios that can affect transactionrouting and interchange income and expenses, and therefore, canleverage this expertise in negotiating interchange rates withmerchants.

Another option credit unions should consider is seeking out newincome opportunities to negate some of the interchange losses.

A third-party network partner can also aid in this capacity, bynot only working to ensure a credit union keeps as much interchangeincome as possible, but also by seeking out new incomeopportunities.

As financial institutions continue to navigate uncertainterritory in an ever-changing interchange environment, aligningwith partners to help you steer smoothly through choppy waters, canmake a huge difference in an organization's solvency. Minimizinginterchange-induced stress, will give credit unions more time tofocus on what really matters most – keeping its members happy.