Removing Barriers Blog

Cornerstone League Successfully Opposes Arkansas Interchange Bill – October 6. 2016
Posted October 06, 2016 by CUNA Advocacy

Yesterday, lawmakers in Arkansas considered a bill that would require a study of the revenue implications of prohibiting interchange fees on nonfederal taxes. Ron Harrod of the Cornerstone Credit Union League and Windy Campbell, CEO, Arkansas Employees FCU testified in opposition to the measure at a Tax and Revenue Committee hearing.  Harrod and Campbell explained to legislators that such a prohibition would not work and, if enacted, would have a significant impact on the ability of Arkansas consumers to use their payment cards quickly and seamlessly at point of sale. They further explained that passage of the bill would impose unreasonable burdens on credit unions, other small financial institutions and the national payments system as well as on retailers who will face an increase in administrative costs.

Similar legislation has been rejected numerous times including in Arkansas in 2013 and 2015.