CrossState Credit Union Association Vice President Michael Wishnow appeared with Beki Landon, senior vice president of finance at Belco Community Credit Union recently on Pennsylvania Newsmakers to discuss the increasing use of debit and credit cards, interchange, and consumer protection.

“We’re seeing a lot of trends of members wanting to use debit and credit cards. The pandemic really increased that fewer people were going out to stores, a lot less cash was changing hands,” said Landon.

She explains how the usage of debit and credit cards continues to rapidly grow as more people engage with digital wallets and contactless payments. She also brings up the associated risks of fraud that come with card data.

“Most fraud departments are proactively monitoring trends. If they see a series of transactions that look fishy, they’ll let the member know and then the member can verify whether or not they made that transaction. If not, they’ll stop it before it gets out of hand,” said Wishnow.

Landon adds that while members have “a lot of exposure” on their cards, credit unions have coverage, systems in place and activity monitored.

“Interchange is the grease that makes the whole thing work,” said Wishnow. “The merchants pay a portion of their sales to the system and that system includes the networks that moves the money, as well as, the financial institution that the store uses. This money flows through and it’s what guarantees a seamless transaction for the consumer.”

Wishnow adds that interaction is an “extremely small percentage” in the overall transaction and that is borne by the merchant.

Landon and Wishnow also discuss members’ financial situation with inflation. The full interview can be found below.