DCUC Asks NCUA to Assess Interchange Protections Following FDIC Proposal
By CU Today Staff —
WASHINGTON--The Defense Credit Union Council today Thursday sent a letter to National Credit Union Administration Chairman John Crews asking whether the agency is considering additional action concerning state interchange restrictions and their application to credit unions nationwide.
The request follows a September 17 statement from the Conference of State Bank Supervisors describing an FDIC proposal addressing parity between out-of-state, state-chartered banks and national banks, including services delivered without a physical branch in every state.
“We are asking NCUA to explain what protections already exist, where they differ by charter, and what questions remain unresolved,” said Jason Stverak, DCUC chief advocacy officer. “Our letter does not assume that a bank-specific framework automatically applies to credit unions. It asks the agency to identify the options available under the separate laws governing credit unions.”
DCUC’s letter recognizes NCUA’s June interim final rule, which clarified federal credit unions’ authority to receive non-interest fees, including credit and debit card interchange. The rule became effective June 30. The codified regulation also addresses compensation received through payment networks, intermediaries, and other third parties.=
The letter requests an assessment of whether additional clarification is needed for federal credit unions’ interstate payment services, a separate review of protections available to federally insured state-chartered credit unions, and information about coordination with other financial regulators. It also asks NCUA to distinguish existing authority from matters that could require state action or legislation.
“We would welcome an assessment of direct compliance costs, costs transmitted through service providers, and any differences by institution size,” Stverak added. “The inquiry also asks how potential action would interact with consumer-protection, privacy, and safety-and-soundness requirements.”
The request builds on DCUC’s May 29 letter to the OCC, June 22 letter to the House Financial Services Committee, and July 8 comments to NCUA. Those communications addressed federal preemption, payment-processing requirements, smaller institutions’ compliance concerns, and services for members who move across state lines or deploy overseas.
DCUC requested a written response and offered to meet with Chairman Crews and agency staff, together with representatives of federal and state-chartered defense credit unions, to discuss operational questions and provide additional information.
Originally reported by CU Today.