ARLINGTON, Va. — Credit unions which rely on credit card interchange for part of their non-interest income are probably safe to go for at least the next decade if not forever, according to banking and financial industry experts.
Although financial institutions, including credit unions, make most of their money from credit cards' finance charges, interchange still plays an important and steady role, particularly for credit unions that are generally slow to make as much money from credit card fees, experts have said.
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.
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