The Government Accountability Office (GAO) today issued a report on credit card “Interchange,” as mandated by the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009, enacted last spring. The report is titled “Rising Interchange Fees Have Increased Costs for Merchants, but Options for Reducing Fees Pose Challenges.” Following is the statement of CUNA’s Dan Mica in reaction to the report:

CUNA President And CEO Dan Mica On GAO Report On ‘Interchange Fees’

“The report rightly pinpoints the fact that Interchange is a significant source of revenue for smaller issuers such as credit unions. In many cases, this revenue allows credit unions to offer credit card programs to their consumer/members which are competitive with card programs offered by much larger institutions. In fact, those credit union programs have proven to be less expensive for our members than those offered by larger issuers. In the report, GAO recognizes that having small issuers in the market benefits consumers by forcing competition. Limiting or reducing Interchange would likewise limit competition – and our members would pay the price. The GAO report further underscores why Congress must protect the interests of consumers and oppose harmful Interchange legislation.”