RALEIGH, N.C.-State Employees' CU here and Navy FCU say they have no plans now to make changes to address the new interchange cap.
Most of the attention within the CU industry regarding the Durbin rules has been focused on credit unions below the $10-billion cutoff. The $48-billion Navy, $24-billion SECU, and the $16-billion Pentagon FCU are the only credit unions subject to the new 24-cent interchange cap instituted by the Fed.
Navy and SECU spoke with Credit Union Journal about their intentions, while the Alexandria, Va.-based Pentagon declined to comment.
SECU told Credit Union Journal it currently has no plans to add fees to checking or debit cards. The CU has been charging a $1 monthly checking maintenance fee and that will stay the same. SECU does not charge for use of its debit card. "We want members to keep using the debit card. We don't want to steer them to checks," said Leanne Phelps, SVP of card services.
Asked if she thought SECU could hold off adding fees, Phelps restated there are no plans to make adjustments. However, she noted, "I am sure somewhere across the organization things may need to be adjusted, possibly deposit rates. But no plans yet."
Phelps said SECU has a high debit usage and penetration (75%), 60% checking penetration, 92% card activation rate, and members use the debit card an average of 19 times per month. She said the credit union has been doing well with debit and that is allowing the organization to hold the line. "Right now our goal is to keep money in our members' pockets,
Navy's Jennifer Sadler, AVP-corporate communications, also stated that the Vienna, Va.-based credit union, the world's largest, does not have any plans to add any additional fees to any products or services. "We continue to provide our members a free checking option with an ATM rebate and free debit cards. We have no plans to change any of that."
