In Post-Durbin Era, Credit Unions Can Take Proactive Steps to Protect Debit Card Revenue


TAMPA, Fla. (May 17, 2013) With debit industry dynamics fundamentally altered by the Durbin Amendment, credit unions should be aware of strategies to protect their debit card revenue as even exempt issuers will likely be susceptible to reductions in interchange.

In light of all of these changes, Card Services for Credit Unions (CSCU) has partnered with First Annapolis Consulting to produce “The Changing Debit Market: Post-Durbin Developments” white paper which describes how the heightened competition for network transaction routing has placed pressure on network pricing.

“Although most credit unions are exempt from the interchange price controls enacted by Durbin, it’s important for our credit unions to be aware of current and potential market forces that could dilute exempt issuer’s interchange revenue,” said Bill Lehman, vice president of Portfolio Consulting Services, CSCU. “Being aware of such forces is the first step to successfully strategizing on how to maximize the profitability of a debit program in a compressed interchange market for all issuers.”

In addition, the paper offers guidance to help credit unions manage debit programs through this change and offers approaches to growing debit card volume.

Credit unions can access the complete white paper at www.cscu.net/whitepaper