The Senate recently passed an interchange rate provision in the final
financial reform legislation. This provision will have unintended
consequences for all of OFCU members using debit cards.

Merchants receive tremendous benefits when they choose to accept
debit and credit cards as a form of payment. They are paid immediately,
and they do not have to deal with cash or wait for a check to clear. Like
electricity or rent, the interchange fee that the merchant pays is a cost of
doing business. Government rate controls on interchange reduce the merchants’ responsibility to pay for the benefits received from the card payment system and will drive up costs for credit unions and you—our
members.

Oregonians CU incurs significant expense when operating our card payment system. For example, OFCU is responsible for administration of card programs, customer call centers, and reissuing cards in cases of merchant fraud. Fraud losses have increased significantly for Oregon credit unions in recent years and interchange fees support these costs. If interchange rates were reduced, OFCU and other financial institutions will be forced to raise their rates and fees for card services. And, OFCU might even have to curtail debit and credit card services for members. Furthermore, there is no evidence to suggest that merchants would pass along any savings resulting from lower interchange to consumers.

How you can help
We encourage you to contact your Senators and Representative today and ask them to remove the interchange amendment.

• Write a letter - the Credit Union National Association (CUNA) has created a letter template that you can customize and email directly to your Senators and Representative.

• Make a call- Call 877.223.5275 and reach House offices and Select Senate Conferees so you can voice your concerns directly.

To learn more, check out CUNA’s website. We thank you for your support.