Credit unions detail impact of 'Michaels' Data Breach
New rules on debit interchange could threaten future credit union debit card offerings
Bettendorf, Iowa – Three weeks ago, the "Michaels" craft store in Bettendorf experienced a data breach. This follows major data breaches of TJX and Heartland. Other data breaches take place on a regular basis where the merchant is not always identified.The newest Ipod nano 5th is incontrovertibly a step up from last year's model, In most cases, the credit union or bank will work with the victimized consumers to investigate,The same Air purifier, cover removed.we supply all kinds of oil painting reproduction, reissue debit cards, and block future suspicious transactions. All this comes at no expense to the consumer, but is funded by interchange fees paid by retailers. Interchange fees are paid by the merchant when a debit card is swiped, and help cover the costs of fraud associated with plastic cards. However, the Federal Reserve's proposed rules on interchange fees may require consumers to pay more for these services in the future.
The proposed rules by the Federal Reserve Board would cap the debit interchange fee significantly below the actual cost of providing debit card services. Having the government step into a free market system and set this fee at an artificially low level threatens the ability of credit unions to continue offering this service in the future, said Paul Lensmeyer,Welcome to the official Facebook Page about Ripcurl. President/CEO,We processes for both low-risk and high risk merchant account. Ascentra Credit Union. In the end, the consumer is going to have to pay costs that are currently being paid by the retailers whom benefit from the payment card network.
"While most credit unions are exempt by statute from the regulation, there are legitimate concerns regarding whether this exemption will work," said Lensmeyer. "In fact, Federal Reserve Board Chairman Bernanke has questioned on multiple occasions the effectiveness of the statutory exemption. If the rules are permitted to go into effect, credit unions and other debit card issuers will likely be forced to increase fees to consumers to cover the loss of debit interchange revenue. This will make debit cards more expensive and potentially less available for some consumers."
Credit unions believe this issue deserves additional consideration before implementation. Senators Tester and Corker have introduced legislation (S. 575) to delay the implementation of the debit interchange fee regulation and study its impact on consumers, issuers and merchants. They plan to offer their bill in the near future.
"On behalf of Iowa's 134 credit unions and their 940,000 members, we ask Senator Harkin and Senator Grassley to support this legislation when it comes to the floor for a vote," said Lensmeyer.
New rules on debit interchange could threaten future credit union debit card offerings
Bettendorf, Iowa – Three weeks ago, the "Michaels" craft store in Bettendorf experienced a data breach. This follows major data breaches of TJX and Heartland. Other data breaches take place on a regular basis where the merchant is not always identified.The newest Ipod nano 5th is incontrovertibly a step up from last year's model, In most cases, the credit union or bank will work with the victimized consumers to investigate,The same Air purifier, cover removed.we supply all kinds of oil painting reproduction, reissue debit cards, and block future suspicious transactions. All this comes at no expense to the consumer, but is funded by interchange fees paid by retailers. Interchange fees are paid by the merchant when a debit card is swiped, and help cover the costs of fraud associated with plastic cards. However, the Federal Reserve's proposed rules on interchange fees may require consumers to pay more for these services in the future.
The proposed rules by the Federal Reserve Board would cap the debit interchange fee significantly below the actual cost of providing debit card services. Having the government step into a free market system and set this fee at an artificially low level threatens the ability of credit unions to continue offering this service in the future, said Paul Lensmeyer,Welcome to the official Facebook Page about Ripcurl. President/CEO,We processes for both low-risk and high risk merchant account. Ascentra Credit Union. In the end, the consumer is going to have to pay costs that are currently being paid by the retailers whom benefit from the payment card network.
"While most credit unions are exempt by statute from the regulation, there are legitimate concerns regarding whether this exemption will work," said Lensmeyer. "In fact, Federal Reserve Board Chairman Bernanke has questioned on multiple occasions the effectiveness of the statutory exemption. If the rules are permitted to go into effect, credit unions and other debit card issuers will likely be forced to increase fees to consumers to cover the loss of debit interchange revenue. This will make debit cards more expensive and potentially less available for some consumers."
Credit unions believe this issue deserves additional consideration before implementation. Senators Tester and Corker have introduced legislation (S. 575) to delay the implementation of the debit interchange fee regulation and study its impact on consumers, issuers and merchants. They plan to offer their bill in the near future.
"On behalf of Iowa's 134 credit unions and their 940,000 members, we ask Senator Harkin and Senator Grassley to support this legislation when it comes to the floor for a vote," said Lensmeyer.
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