A reasonable return must be preserved for credit unions from interchange fee income, including advocating for the cap on debit interchange fees to be raised.
We strongly believe in preserving a reasonable return for credit unions from interchange fee income - including advocating for the cap on debit interchange fees to be raised. The arbitrary price cap must be removed in order to restore some fairness to the interchange system and increase the benefits realized by a greater range of merchants. This will this make the interchange system stronger and better for consumers.
How This Impacts You
Federal Reserve data shows that the Durbin amendment's price cap has negatively impacted small financial institutions. Despite the exemption for institutions under $10 billion, interchange revenue to credit unions and community banks has dropped, with a 16.6 percent decline in revenue from PIN transactions and 5.2 percent decline in revenue from signature transactions.
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