DALLAS (9/18/09)--A new white paper from TNB Card Services explores fixed versus variable rate credit cards in light of the recent passage of the Credit Card Accountability, Responsibility and Disclosure Act. The “Fixed vs. Variable Rate Pricing Strategies in the Era of Card Reform” white paper details the effects of new regulations on credit unions and their cost of funds, which affects the interest rates they must charge to maintain a sufficient margin. It explains the cost of funds issue in the current economic situation, and helps guide credit unions in the future as they determine those costs and their interest rates. “The issue today is how credit unions can best maintain ongoing interest yields in an environment where there are or may be significant changes in the cost of funds,” said Mitch Raymond, senior vice president of product development at TNB Card Services. “While two-thirds of cards today are variable rate cards, this may not be the best approach for all credit unions. “This white paper highlights the pros and cons of the two pricing strategies to help credit unions make the right decision,” he added. The paper also discusses how variable rates and fixed rates are affected differently by the cost of funds, and what advantages each approach offers to credit unions and their member cardholders. The free paper is available electronically on the TNB Card Services website.