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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