antirelic's Journal: The Internet without VISA/Debit Cards

I received a recent email from my bank regarding legislation being proposed in congress that impacts financial institutions ability to collect transaction fees. Below is an excerpt from the email:

"I am writing to you about an issue that could negatively impact all PSECU members. The U.S. Congress is considering legislation that would reduce the amount of interchange fees paid by merchants when they accept a credit or debit card in payment for goods or services. Interchange fees are used to pay the costs of processing credit and debit card payments, with a portion going to credit card issuers like PSECU.

This issue is important to all of our members since roughly 60% of our annual net income is derived from them, allowing PSECU to offer low- or no-cost products and services. Interchange income also helps PSECU absorb the cost of fraudulent transactions when merchant data systems are breached. A significant loss in interchange fee income may result in PSECU having to charge more fees, increase interest rates on loans, or at worst suspend some products or services. Therefore, it is critical to preserve the income PSECU receives from interchange fees paid by merchants."

I've done a little more research and it turns out that many smaller banks may be forced to cut VISA/Debit services for their members. I couldnt imagine online shopping without it. http://www.psecu.com/yourvoice/