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Improving Your Financial Life

Blog > 2011 > March > Interchange Changes Could Cost You Money
March 31, 2011

Interchange Changes Could Cost You Money

by Hostetler, Michael

Each time that you use your Financial Center debit or credit card, a merchant is paid immediately and your credit union receives interchange income. This interchange income helps pay the cost of many of your credit union services such as reissuing cards compromised by a merchant data breach and supplying a contact center that is available when your debit or credit card is stolen.

The United States Senate passed a financial reform bill that included provisions that would make changes to this card payment and interchange system. If you have a Financial Center debit or credit card, interchange supports the program that you depend on. If interchange is reduced and changes were made that hindered the ability for Financial Center to adequately support the program, then you may end up paying more to use your debit or credit card.

Furthermore, this legislation may allow merchants and retailers to discriminate against which debit cards they accept. Merchants and retailers may reject your debit card, regardless of what financial institution you belong to.

The current system allows your credit union to provide competitive and member-friendly products such as our debit and credit cards. Please join your credit union in voicing opposition to this legislation.

 

Category: FCFCU
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