Payments/Credit/Debit

Rep. Shelley Moore Capito (R-W.Va.) plans to introduce later today a bill that would delay the implementation of the Federal Reserve’s debit interchange rule by one year.

TCF National Bank, the financial institution which has taken the Federal Reserve to court over the debit interchange cap, lost roughly 250,000 checking accounts when it announced it would start charging a fee for checking accounts with balances of less than $500.00

Paradoxically, credit unions may need to act to increase debit transactions if a cap on debit card interchange makes it into federal regulation, a specialist on checking and debit maintains.

Community banks could lose money and consumers could have to pay higher fees if the Federal Reserve implements its debit interchange proposed rule as is, FDIC Chairman Sheila Bair wrote Federal Reserve Chairman Ben Bernanke.

The Federal Reserve’s proposed rule regulating interchange is unconstitutional and would do “irreparable harm to issuers and consumers.’’

The $641 million Purdue Federal Credit Union reports that an affinity card that it issues on behalf of the Purdue Alumni Association is the leading driver for new CU membership.