Press

NAFCU Disputes Federal Reserve Interchange Fee Report

WASHINGTON, DC (May 23, 2013) National Association of Federal Credit Unions (NAFCU) President and CEO Fred Becker made the following statement today on the Federal Reserve’s report that the exemption for small debit card issuers from interchange fee standards is working.

“NAFCU is not convinced by the Federal Reserve’s report on the impact of its interchange rule on small debit card issuers.  Our data shows that the median interchange fee, as well as the median fee as a percent of the total amount of a transaction, have decreased since the rule came into effect.  We note that the Federal Reserve, for at least with respect to one part of the report, notes that “the results of the survey may not be representative of the experience of small issuers overall.”  Our member credit unions, contrary to what the Fed implies, have reported that the rule has caused them significant problems and challenges, and continues to be harmful.

“We continue to believe that credit unions and other small issuers will experience a sizeable decrease in debit interchange revenue over time, which could ultimately lead to higher costs and fewer product choices for credit union members who use debit cards.”

About Us
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.

---