Credit unions need to be able to recoup the true costs of offering debit card services and make a reasonable return. The Durbin amendment’s cap on debit interchange fees makes this impossible.
While envisioned to help consumers, the Durbin Amendment has instead lined the pockets of big box retailers, with little evidence of price cuts for consumers or benefits to small merchants. Credit unions are committed to exceptional member service and as such must be able to make a reasonable return on interchange fee income in order to continue to provide important consumer financial services, such as free checking accounts. NAFCU urges lawmakers to reject and oppose the Credit Card Competition Act.
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, per-transaction interchange revenue to credit unions and community banks has dropped by 10 percent and debit card issuers in total have lost more than $100 billion in revenue.
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Recent Media Outreach
February 27, 2023
This week: NAFCU elevates CU voices in Washington
February 21, 2023
This week: Congress in recess; NAFCU elevates CU priorities
In the News
American Banker | July 27, 2022American Banker: Senators prepare bill to crack down on credit card swipe fees
CU Today | June 22, 2022CU Today: Concerns Over Potential Changes in Interchange Rates Again Raised by NAFCU
CU Today | May 09, 2022CU Today: Here's How One CU Hill Advocate Views Recent Senate Hearings on Overdrafts, Interchange View all
Letters & Comments
March 07, 2023Letter to House Financial Services Committee on Federal Reserve Hearing
March 06, 2023Letter to Senate Banking Committee on Federal Reserve Hearing
February 24, 2023Letter to Congress on the Credit Card Competition Act View all