Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA releases interchange rule analysis
WASHINGTON (7/5/11)--The Credit Union National Association has released a final rule analysis of the Federal Reserve’s final debit interchange fee and routing regulations. The Fed’s final rule, which was released last Wednesday, would cap large issuer debit interchange fees at 21 cents, to cover network connectivity, hardware, software, and labor costs, as well as costs related to network processing and transaction monitoring. An additional five basis points per transaction may be charged to cover fraud losses. A separate interim final rule proposed would allow an additional penny to be charged if financial institutions are in compliance with Fed established fraud prevention standards. Debit card issuers with less than $10 billion in assets are exempt from the direct impact of the cap provisions. Prepaid cards and government-issued cards are also exempted. The final rule will also require issuers to provide a debit card that can be processed on at least two unaffiliated card networks, such as one signature network and one unaffiliated PIN network. Alternatively, issuers may also provide a debit card that can be processed on two or more unaffiliated signature networks, but not on any PIN networks, or that can be processed on two or more unaffiliated PIN networks, but not on any signature networks. The final rule also prohibits issuers and payment card networks from limiting merchants' ability to choose the network on which a transaction is routed, limited to those networks on which the debit card is enabled to be used. For the final rule analysis, use the resource link.


RSS print
News Now LiveWire
Online comment letter tool--PowerComment--rolled out nationwide by @CUNA @CANVgovaffairs See #NewsNow http://t.co/SLIxOaVe8H
51 minutes ago
Landmark #creditunion exam parity bill earns @GovernorQuinn signature http://t.co/WcWePlAnfb
1 hours ago
Fixed-asset cap elimination one item on @TheNCUA board agenda for next week. See #NewsNow http://t.co/N2U5Bq9R24
1 hours ago
USFCU, Minn., hosts small business networking night. http://t.co/CBFHpJTFZe
18 hours ago
Number of @CUNA-certified fin. counselors hits 2,175 http://t.co/3fQGcdxyLO
18 hours ago