Contact your federal legislators TODAY and ask them to oppose the Senate-passed interchange provision.

Recently the United States Senate passed the Financial Services Reform bill and sent it to a conference committee to iron out differences in their respective bills. While financial reform to our system is important, there are still parts of this legislation which will negatively affect credit unions and their members.  Specifically, an amendment which would place a government imposed cap on the amount merchants pay to support the system that allows you to use your debit card at their establishments.

As a credit union, interchange gives us the income we need to run our debit card programs.  We assume the risk for many aspects of our card programs, such as fraud and data security.  The merchants assume none of these liabilities.  Contrast this to the day when checks were the most frequently used form of payment. Merchants where left holding the bag for bounced checks. Today, with debit cards, the merchant has little to worry about and they get paid immediately.  When financial data is compromised, it is not the merchant that bears the cost of replacing cards, it is the financial institution.

We do not set the interchange rate.  However, if the rate becomes too low we will be forced to either discontinue offering card services or impose other fees to cover costs. Small merchants, like credit unions, are caught up in a much bigger game.  The merchants' coalition is being headed up by the big box merchants who stand to gain a windfall with reduced rates.

We are asking you to take a moment to call your Member of Congress about the interchange amendment and stress to him or her the importance of removing the interchange amendment language from the final

Financial Services Reform bill.  Call toll-free 1-877-223-5275.