Payments/Credit/Debit

Debit card rewards programs at credit unions will survive the coming downturn in debit card interchange, but they will have to change and broaden their foundations in order to remain a part of credit union programs and services.

The Federal Reserve's proposed rule regulating interchange will be the subject of a Feb. 17 hearing of the House Financial Services Committee's Subcommittee on Financial Institutions.

Starting this year, at least some underbanked or unbanked tax payers will be able to receive their tax refunds on prepaid Visa branded debit cards.

Credit Union 24 reported that 28 new credit unions signed up with its nationwide ATM and POS network in 2010.

Now that the Federal Reserve has publicly discussed the proposed rules surrounding debit card interchange and routing, financial institutions should be preparing for the impact.

By now nearly every credit card issuer understands that the CARD Act and the new normal has changed the way credit card programs must be managed.