America’s Credit Unions President/CEO Jim Nussle highlighted the credit union industry’s investment in payment technologies and the role of interchange in fraud prevention in a letter to the Senate Banking Committee (SBC) Wednesday ahead of its hearing to examine scam and fraud trends.
“Credit unions invest significantly in both security and compliance management systems to prevent unauthorized electronic fund transfers (EFTs) and support faster, innovative payment options for their members,” wrote Nussle. “The credit union industry’s commitment to relationship banking also gives members confidence that if they have a problem, they can count on their credit union to make every effort to resolve the issue.”
Nussle also noted credit unions are increasingly investing in peer-to-peer (P2P) payment options for their members. However, he urged the SBC to not make credit unions liable for the “misdeeds of fraudulent actors” because it would limit consumer choice by straining credit union resources.
Additionally, he stressed the negative impacts the big box bailout bill (S.1838/H.R. 3881).
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