Search
 

Where Is Debit Interchange Headed?

Although some credit unions believe that the one-third interchange cut for signature debit transactions would remain in place, industry executives say the a new interchange rate for signature debit is being negotiated now and will go into effect after Jan. 1, 2004. The 33% rate cut in the interchange rate...

By Staff Writer | Updated on July 08, 2003

Although some credit unions believe that the one-third interchange cut for signature debit transactions would remain in place, industry executives say the a new interchange rate for signature debit is being negotiated now and will go into effect after Jan. 1, 2004. The 33% rate cut in the interchange rate immediately after the settlement was part of the agreement to settle the case, one executive explained. It was one part of the compensation packages that the card associations offered the retailers. But everyone agreed that the interchange rate would be negotiated, the executives said, and many believed it is headed higher. Although no one from either VISA or MasterCard was available to comment on the interchange discussions, industry sources have speculated on how they would go. “Previously, VISA and MasterCard more or less set the interchange rate and didn’t actually negotiate with anyone,” explained one executive. “Now the card associations are presumably having to negotiate with the big retailers on their rates,” he added. Although no one could say for sure, the executives agreed the most likely outcome would be for MasterCard and VISA to negotiate the rate for the biggest, high-volume retailers and that smaller retailers with less volume would pay a higher rate.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.