The Durbin amendment to the Dodd-Frank bill changed POS interchange for every Credit
Credit Unions can no longer control how a merchant chooses its routing preference.
The merchant will typically route a transaction to the network that costs them the
least amount of money,
and their cost includes your interchange income. Of course, there are a number of
variables in that equation.
If your debit processor has, by default, activated their own PIN network for your
card program, this can affect
how transactions route. If your debit processor also acts as a merchant processor,
this too affects how
There are a growing number of scenarios that can and will affect your transaction
and your interchange income/expense:
How many networks are on your card?
Does your debit processor also act as a merchant processor?
Do you offer your members a surcharge-free ATM program?
Do you pay rebates to you members for surcharged ATM transactions?
Are you seeing PINLess POS transaction on your statements?
Does you processor or network charge any EMV related transaction fees?
Do you support mobile-pay transactions?
These points (and countless more) will directly affect your card program's interchange,
transaction routing and your program's overall income and expense.
At CU24 we have a unique view of this
landscape and offer our consultative approach to
all our credit unions. As a CUSO, we believe strongly in the cooperative
principles and know that we are all in this together.