The New York Credit Union Association is urging credit unions to sign a letter opposing the Fed’s Regulation II amendments.
In a message to credit unions on Wednesday, the Association’s advocacy team stated that a potentially costly and burdensome amendment to Regulation II would clarify that it is the responsibility of debit card issuers to provide at least two unaffiliated payment network options for card not-present transactions.
This amendment would impact credit unions in several ways, including reducing interchange revenue. Global networks such as Visa and MasterCard generate higher interchange when compared with national or regional networks like NYCE or STAR. The dual network requirement will create fluctuation in interchange income and could impact your credit union’s ability to affordably support debit card transactions.
The Association is asking New York credit union advocates to either sign the letter as drafted or edit the body to better voice your credit union’s specific needs (but please do not change the subject line). Ultimately, the Association seeks to have the Fed withdraw the proposal.
Visit CUNA’s Grassroots Action Center to sign and submit the letter.