Thursday, March 24, 2011

Save My Free Checking!

"Every time you swipe your card for a purchase, the merchant pays a “merchant discount fee” which allows them to be paid immediately. This fee is usually 2 to 2.5% of the transaction amount. A small portion of this fee (around 1.65%) goes to the credit union or bank that issued you your credit or debit card. Interchange supports everything from re-issuing cards comprised due to fraud, to the ability to provide a call center to contact if your card gets lost or stolen.

Merchants pay their fair share of this fee so they can have the convenience of using the global electronic payment network and be guaranteed payment. The ability to offer the convenience of accepting credit and debit cards to their consumers also enables merchants to increase their revenue.

Interchange is vital for consumers like you to be able to use your cards easily, quickly and cost-free. It covers the costs of floating you funds on each transaction, any risk of nonpayment or fraud and any other card-related costs.

How does this affect me?
If this proposed debit legislation passes, the interchange fee will shift from retailer to consumer and could mean higher fees, debit restrictions and the possible elimination of free checking at your credit union. A majority of credit unions offer free checking as one of many benefits of membership, in addition to low fees and great rates. If merchants stop paying their fair share of interchange fees, many of these valuable benefits will be lost.

Credit Union Members Will Pay the Price
Pundits and the media all agree, if this shared fee system gets changed it’ll be members like you who will pay the price. The change will cost credit unions millions of dollars, forcing us to make up for lost revenue. What this could potentially mean to you is:
No more free checking
Online banking fees
Annual debit card fees
Point-of-sale debit card fees
Restrictions on debit card usage
No more card rewards programs

If this interchange fee legislation is stopped, it won’t be another “bailout,” it’ll be another way that financial institutions are protecting their customers and members. The fallout from the legislation passing will trickle down and affect credit union members like you. Credit unions want to continue to put their members first by protecting you and offering you affordable products and services – like free checking."

What can you do?? Take action and click here -

-This information was taken from Be sure to check out the video and other information on this as well!

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