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CO-OP Financial Services Blog: Insight Vault

The Fed’s Draft Rules on Interchange – What It Means to CO-OP Financial Services

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 CO-OP Financial Services would like to thank the nearly 500 viewers who joined us for our Jan. 28 webinar on the Fed’s Draft Rules on interchange.

We urge all credit unions to make their voices heard by the Feb. 22 deadline to comment on the draft rules. For advice on where and what to write, please click here. For further background, we invite you to view a replay of the webinar here.

The Durbin amendment and the associated Fed Draft Rules are bad for credit unions. At minimum they restrict credit union choices and at worst they will lead to increased fees for members. CO-OP has financially supported the credit union trade associations, the Electronic Payments Coalition and the Electronic Funds Transfer Association in both fighting and shaping the legislation. We’ve also worked closely with these groups and provided direct input to the Fed as they have developed the draft rules.

We are now reviewing and testing systems to insure we will be ready for a two tier interchange rate and modified routing environment. We have made these and future expenditures to support you, our credit union clients. Our greatest concern is that a combination of fees, merchant steering and member confusion will retard the growth of or even reduce debit transactions.    

For these reasons and many more, please make your voices heard by the Feb. 22 deadline!

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