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From left: Keith Sias, Jason Stverak, Mike Lee, Richard Gose

PODCAST: Interchange income at risk

Pending legislation threatens credit unions’ ability to give back to their communities.

September 1, 2023

Pending interchange legislation, the Credit Card Competition Act of 2023, would not only reduce credit unions’ interchange income, it would threaten consumer data security, privacy, and access to credit.

The bill, known as Durbin 2.0, could also harm credit unions’ ability to give back to their communities.

This episode of the CUNA News Podcast looks at this legislation and its potential impact on credit unions, consumers, and small businesses.

Jason Stverak, CUNA’s deputy chief advocacy officer, explains the implications of Durbin 2.0, how the CUNA-League advocacy team is addressing this threat, and how credit union leaders can get involved.

We continue with a look at how $387 million asset KCT Credit Union in Elgin, Ill., uses interchange income earned from its affinity, purchase, and other card transactions to assist local school districts. Sharing their insights are Mike Lee, KCT president/CEO; Richard Gose, CUNA’s chief political officer; and Keith Sias, senior vice president of governmental affairs at the Illinois Credit Union League.

You can listen to the CUNA News Podcast on Apple Podcasts, Google Podcasts, Spotify, and YouTube.

In this episode:

0:51: Episode introduction

1:43:  Why is the Credit Card Competition Act back?

5:36: What's in the Credit Card Competition Act?

7:08: The case for the bill

7:56: How would the bill affect consumers and small business?

10:19: How bill would affect fraud protection

11:27: Thoughts on CUNA Interchange study

12:56: How CU leaders can get involved

15:04: Why bill is a priority for proponents

15:44: What is the next step?

19:25: Jason's final thoughts

20:35: Keith Sias, Richard Gose, and Mike Lee

20:47: The impact of cards on members and communities

26:54: Fund raising for school districts

32:39: How consumers can suffer if bill is passed

34:54: How have legislators responded to bill opposition?

41:22: Involving consumers and small businesses

43:45: Bill's affect on KCT's card programs

46:54: Final thoughts