Payments/Credit/Debit

Interchange. Credit unions love it and merchants hate it. However, merchants are being more than hypocritical in suggesting credit unions and other financial institutions cap debit card interchange fees.

Credit card companies have enlisted state treasurers who say that cutting interchange fees would limit card issuers' abilities to give states access to prepaid cards to distribute benefits at little or no cost.

As the industry's interchange blitz strode into full swing this week, CUNA and state leagues warned anew Monday about the bottom line impact on credit unions should the Durbin amendment be enacted.

When it comes to the interchange battle, the national spin may be that banks and credit unions can cooperate to defeat the Durbin amendment, but if Texas is an example, that job may be easier said than done.

Saying he is "not confident we can win this but that doesn't mean we shouldn't do our best," CUNA President/CEO Dan Mica encouraged credit union members to come to Washington to lobby to remove an amendment on interchange fees.

The $3.1 billion United Nations Federal Credit Union has become the first financial institution in the United States to issue chip and PIN credit cards.