The Federal Reserve Board recently proposed a rule which would cap interchange fees received by financial institutions. Although the Federal Reserve was directed to exempt small institutions like credit unions, the rule essentially subjects us to the same rate cap.

 

Each time you use a debit or credit card, a merchant is paid and Los Angeles Police Federal Credit Union receives interchange fees which lower the costs associated with our card offerings. The Federal Reserve’s interchange rule would dramatically decrease debit card fees which would have to be absorbed, most likely resulting in fee, rate, or expense adjustments.

 

To help ensure that there is ample time provided for the necessary analysis, we are asking you to contact your elected representatives to let them know that you are in favor of their bills.

 

To assist you in contacting your representatives, here are a few options:

Support of these bills delaying the implementation of the Fed’s rule will go a long way in helping LAPFCU cope with the deteriorated economic environment. Thank you for your support.