Los Angeles Police Federal Credit Union wanted to alert members about a bill related to the processing of credit and debit card payments that could have a negative impact on our Credit Union.

 

S. 3217, the Restoring American Financial Stability Act, is being reviewed in Congress. This bill includes an amendment that would reduce the amount of interchange fees paid when merchants accept a debit card.  The interchange amendment would allow the Federal Reserve to control the setting of interchange rates which would have a negative affect on LAPFCU.

 

Interchange fees are an important tool in allowing LAPFCU to provide our members with the best products and services at low- or no-costs. Interchange fees also help us to combat costs associated with card fraud. If the fee structure were to be changed, it would limit what we could receive in interchange fees.

 

Under this amendment, merchants and retailers may have the ability to determine which debit cards they accept based upon fees they receive. This means merchants and retailers may have the ability to reject a financial institution’s debit card.

 

Should members wish to voice their thoughts, we wanted to provide you with a link where you may contact your representatives directly. The California Credit Union League has developed a web site -- “Connect for the Cause” – which can direct you to your local representatives and includes a pre-written letter you may email to them.

 

As it may be so disruptive to our members and operations, LAPFCU is against the passage of this bill and wanted to let you know of your opportunity to express your concerns as well.