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NAFCU counters interchange exemption argument from retailers
NAFCU Vice President of Legislative Affairs Brad Thaler wrote to Congress Tuesday to dismantle arguments from retailers that “will tell you that small financial institutions like credit unions won’t be hurt by the bill because it has an exemption for institutions below $100 billion in assets.” Thaler told Congress to not be fooled by the argument, as the retailers made the same argument when the Durbin Amendment was proposed to regulate debit interchange.
He explained the industry’s experience with the Durbin Amendment, which contained an “exemption” for institutions below $10 billion assets, has revealed that even a high exemption threshold will not protect smaller institutions. Federal Reserve data showed that debit interchange revenue on a per transaction basis dropped for exempt institutions after enactment of the Durbin amendment.
“The exemption didn’t work, and the one in the Credit Card Competition Act won’t either,” wrote Thaler. “All credit unions will be hurt by this bill.”
Thaler closed by urging Congress to reject the big box bailout bill. NAFCU will continue fighting to protect interchange fees and other noninterest income to ensure credit unions can keep providing their members with safe, reliable, and affordable financial services.