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Improving Your Financial Life

Blog > 2009 > November > Protect Your Card
November 06, 2009

Protect Your Card

Each time you use your debit or credit card, a merchant is paid immediately and the Credit Union that issues your card receives an interchange payment. This interchange reflects a merchant's fair share of the costs of this convenient system.

The current interchange arrangement helps keep the rates and fees lower that you pay on debit and credit card programs provided to you by your local Credit Union.

Merchants are lobbying Congress to reduce their interchange payment, which would be detrimental to our Indianapolis Credit Union's cardholders, so we are asking you to take a few minutes to tell Congress that interchange should be left alone.

Here are some important things to consider regarding interchange fees:

1. Interchange fees are not directly paid by the consumer. They are paid by merchants to support the card payment system.

2. Interchange fees help us offer our local Credit Union members debit and credit cards that include quality service and attractive rates and fees.

3. Your local Credit Union is not a merchant and is responsible for absorbing losses from fraud and unpaid balances associated with card programs. Interchange fees support activities such as reissuing cards compromised by merchant data breaches and providing a call center to contact if your card is lost or stolen.

If interchange were reduced and could no longer contribute adequate support for card programs, consumers would end up paying more for their debit and credit cards.

It's time to protect the debit or credit card from your local Credit Union. Take action now!
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