ARTICLE
Good Morning! There is excitement in Washington today following the successful passage of President Biden’s $1 trillion-plus bipartisan infrastructure bill through the Senate Tuesday. Nineteen republican senators, including Senate Minority Leader Mitch McConnell (R-KY), joined with Senate Democrats to pass the legislation that will now head over to the Democrat controlled House for their consideration. However, final passage is far from a slam dunk as Speaker Pelosi insists she will not touch the infrastructure bill unless it is paired with a partisan $3.5 trillion “human infrastructure and investment” bill that has yet to be considered in the Senate. We will continue to keep an eye on both the House and Senate as negotiations begin regarding this larger human infrastructure package. Interchange Offensive The CUNA/League System continues to be on the offensive as proposals have been discussed in Congress that would expand the interchange cap for debit and credit cards, a change we very strongly oppose. Interchange is the method that financial institutions, card networks and payments processors use to recover expenses for credit/debit cards. Some examples of expenses interchange covers include losses due to fraud and theft, fraud monitoring, issuing and reissuing cards, and administrative costs. Last week, CUNA's Chief Advocacy Officer, Ryan Donovan, wrote to all 535 congressional offices reminding them that the credit card system works, and plays an integral role in the U.S. economy. In the letter Ryan points out, “Millions of people across the country rely on their credit union’s credit card services to guarantee that their everyday purchases can be made, like putting food on the table and making sure the back-to-school shopping is done. The credit card payment system works. Consumers have a safe, reliable credit payment system; Merchants are made whole at time of sale; and Financial institutions and card servicers are subject to privacy standards under GLBA.” While the exact language of any proposed interchange legislation has yet to be released, this is far too important of an issue for consumers and financial institutions alike. Legislation will not solve the interchange dispute as evidenced by the continuing fight over Sen. Durbin’s 2011 debit price controls, proving some retailers will not be happy until interchange is at zero. Last Call: Share Your Concerns We need credit unions to share their concerns on proposed changes to debit card routing requirements with the Federal Reserve. This is a slightly different from the Congressional action detailed above, however these proposed changes to Regulation II could also lead to decreased debit interchange and increased compliance costs. Linked is a letter template available via CUNA’s Action Alert Center that your credit union can easily send to the Federal Reserve that details your concerns. Please note: The Subject in the action alert should not be changed. This will ensure that the comments are being properly filed with the Fed. TAKE ACTION As always, don't hesitate to contact me at jkruse@dakcu.org with any questions or comments.
Good Morning!
There is excitement in Washington today following the successful passage of President Biden’s $1 trillion-plus bipartisan infrastructure bill through the Senate Tuesday. Nineteen republican senators, including Senate Minority Leader Mitch McConnell (R-KY), joined with Senate Democrats to pass the legislation that will now head over to the Democrat controlled House for their consideration.
However, final passage is far from a slam dunk as Speaker Pelosi insists she will not touch the infrastructure bill unless it is paired with a partisan $3.5 trillion “human infrastructure and investment” bill that has yet to be considered in the Senate. We will continue to keep an eye on both the House and Senate as negotiations begin regarding this larger human infrastructure package.
Interchange Offensive
The CUNA/League System continues to be on the offensive as proposals have been discussed in Congress that would expand the interchange cap for debit and credit cards, a change we very strongly oppose. Interchange is the method that financial institutions, card networks and payments processors use to recover expenses for credit/debit cards. Some examples of expenses interchange covers include losses due to fraud and theft, fraud monitoring, issuing and reissuing cards, and administrative costs.
Last week, CUNA's Chief Advocacy Officer, Ryan Donovan, wrote to all 535 congressional offices reminding them that the credit card system works, and plays an integral role in the U.S. economy. In the letter Ryan points out, “Millions of people across the country rely on their credit union’s credit card services to guarantee that their everyday purchases can be made, like putting food on the table and making sure the back-to-school shopping is done. The credit card payment system works. Consumers have a safe, reliable credit payment system; Merchants are made whole at time of sale; and Financial institutions and card servicers are subject to privacy standards under GLBA.”
While the exact language of any proposed interchange legislation has yet to be released, this is far too important of an issue for consumers and financial institutions alike. Legislation will not solve the interchange dispute as evidenced by the continuing fight over Sen. Durbin’s 2011 debit price controls, proving some retailers will not be happy until interchange is at zero.
Last Call: Share Your Concerns
We need credit unions to share their concerns on proposed changes to debit card routing requirements with the Federal Reserve. This is a slightly different from the Congressional action detailed above, however these proposed changes to Regulation II could also lead to decreased debit interchange and increased compliance costs. Linked is a letter template available via CUNA’s Action Alert Center that your credit union can easily send to the Federal Reserve that details your concerns.
Please note: The Subject in the action alert should not be changed. This will ensure that the comments are being properly filed with the Fed.
TAKE ACTION
As always, don't hesitate to contact me at jkruse@dakcu.org with any questions or comments.