CUNA Survey Suggests Small CUs Feeling Interchange Pinch

A CUNA survey of some of its member credit unions suggests credit unions with less than $10 billion in assets have begun to take a hit to their debit card interchange even though they were not supposed to feel the impact of a debit interchange cap.

Passed as part of the Dodd-Frank financial reform act, the so-called Durbin Amendment, named for its chief sponsor Illinois Senator Richard Durbin (D), capped interchange for debit card issuers with more than $10 billion in assets, but was supposed to exempt debit card issuers of fewer than $10 billion. Only four credit unions have assets of more than $10 billion and thus have their debit interchange capped by the rule, though several others seem likely to pass that threshold this year.