ARLINGTON, Va. — Interchange income and fees represent the smaller part of credit and debit card income, but a part which many credit unions could improve upon, suggested some card experts.
In the card industry overall, in 2006, credit card interchange and fees made card issuers, particularly banks, $38 billion dollars, according to statistics from Visa USA. That represents roughly 35% of card income overall with the balance being made up of income from finance charges.
The industry overall made $21 billion from interchange (19% of the total income) and the remaining $17 billion (16%) from fees, $8 billion from so-called penalty fees, $5 billion from cash advance fees and $4 billion from annual and other miscellaneous fees, according to Visa.
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