Credit unions saw their debit interchange revenue drop by $1.38 million in Q3 of 2012, according to the Credit Union National Association. The alleged culprit is the Durbin Amendment, which imposed a cap two years ago on debit interchange fees, or swipe fees: charges on merchants that are levied by card processors very time a card is used at the point-of-sales terminal.
Durbin intended both to give retailers a break from those fees and to protect smaller financial institutions like credit unions from its impositions – financial institutions with assets under $10 billion were exempt from the camp. However, as this report suggests, such is not the case. Read More