Minnesota Credit Unions Respond to Interchange Proposal

In the Brainerd Dispatch, Heartland Credit Union President, Kathy Harrington, shared the major concerns financial institutions have with proposed changes in Congress to the interchange system.

Harrington noted: "Supporters claim this competition will help lower “interchange fees” paid by the merchant on each transaction. Interchange fees help support the security and fraud protection on your card for a fraction of a cent per dollar transacted."

"That means retailers could choose the cheapest possible routing option, not the most secure…Overhauling the interchange system needs to make sense for everyone it affects. We know that it would cut costs for merchants, but that comes at a cost for consumers."

"Limiting interchange fees makes it likely fewer financial institutions will be able to offer credit cards, or rates will increase just to cover security costs. That means less access to credit for people who need it most."

​Thanks to Kathy Harrington for sharing her perspective on behalf of Minnesota Credit Unions and their 2 million members. Her editorial was also featured in CUNA News and CU Insight.