WASHINGTON–In response to CU-opposed legislative proposals at both the federal and state levels, America’s Credit Unions has released a new graphic titled “How Interchange Works.” The new graphic part of a broader set of resources ACU said it provides credit unions around the issue.
In a statement, the trade group said, “Opposition to the Credit Card Competition Act in both the House and Senate” is ongoing and America’s Credit Unions remains vigilant in efforts to prevent Durbin-Marshall mandates from being added to other bills moving through Congress.”
As the CU Daily reported, and as America’s Credit Union stated, it has also joined with the Illinois Credit Union League to raise awareness of what it said are the “consequence” of the Illinois Interchange Fee Prohibition Act (IFPA). As the CU Daily has been reporting, America’s Credit Unions, ICUL, and other are appealing a recent court ruling that upheld the IFPA, which is set to go into effect July 1.
According to America’s Credit Unions, the resources it is making available “detail the importance of interchange to the security and ease of electronic payments, concerns with current legislation, and how proposed changes would cost consumers, small businesses, and card issuers.”
Reminding Policymakers
It said those resources further aim to remind policymakers that the current card payments system:
- Provides access to credit, while changes would mean fewer issuers and less access
- Boosts retailer sales, since consumers spend more when they use credit cards and retailers get secure payments processed quickly
- Keeps information safe, as interchange helps financial institutions cover some fraud prevention and security costs.
For additional information, the trade groups is directing credit unions to its nder “Interchange/card mandates” in its Resource Library.
