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In congressional testimony and letters to Congress, community banks and credit unions have made their case clear:
The loss of interchange revenue would end up hurting the loyal customers of these local institutions.
“In all likelihood, without the incentive of interchange, community banks like mine would not be able to offer the same services we do now, which means fewer choices for consumers and less competition for their business.
Costs of running the system that are currently covered by interchange would be passed on through the payments chain, with the final burden falling on your average consumer who uses a credit card.”
Read the full testimony from John Buhrmeister on behalf of the Independent Community Bankers of America »
“Interchange revenue helps cover the cost of maintaining the system, a cost which, contrary to merchants’ arguments, is not negligible.
If interchange fee income is capped . . . it will be more difficult to provide our members a credit or debit card without increasing costs elsewhere.”
Read the full testimony from John Blum, CEO of Chartway Federal Credit Union »
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