Credit unions are not parties to the settlement, but will be affected by its terms when and if the final settlement takes effect, according to Mary Dunn, deputy general counsel for CUNA. The settlement calls for a temporary reduction in interchange fees, which likely would result in a reduction in credit card fee income for credit unions.

“We were initially hopeful that the settlement would resolve disputes between merchants and MasterCard and Visa relating to fees the merchants are charged for credit card transactions and how those fees are set,” said Dunn. “But these issues may be unresolved for quite some time as the NRF and individual retailers, including some of the biggest, have already filed a notices of appeal.”

NAFCU, too, has expressed its concern over the settlement, citing the need for greater consumer savings, which had been promised, and promising to watch closely for any negative impacts on credit unions and their members.

“NAFCU will work to ensure that there is no card discrimination based on the issuing institution,” said Carrie Hunt, that trade group's general counsel. “We'll also watch for any chilling effect the new powers granted to merchants may have on credit cards in general.”