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Credit unions exempt from Durbin Amendment impact see decrease in interchange revenue

180px-National_Bank_OamaruRecent data from the Credit Union National Association found that credit unions that should be protected from the impact of the Durbin Amendment interchange fee cap instead saw a decrease in interchange revenue in the third quarter of 2012.

CUNA examined the data from 155 institutions across four different time periods, including from December 2010 to September 2011 as the baseline, September 2011 to March 2013, and March to June and June to September, both of which represented full implementation of the Durbin Amendment.

The data revealed that while debit income increased across the quarter ending in June, it fell by 1.4 percent in the quarter ending in September, which meant a loss of $1.38 million, even though the 155 credit unions surveyed saw an increased number of debit cards issued during the same time.

While the regulations implementing the interchange cap took effect in October 2011, regulations affecting processing did not go into effect until later.

CUNA originally reported that between 120 and 130 credit unions participated in the study, later upping that number to 230.

“Some were not able to break out signature debit interchange from PIN debit interchange,” CUNA Chief Economist Bill Hampel said. “Some had changed processors during that period and were not able to collect the necessary data. If they did not have the data we needed, we didn’t use their data.”

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