Annaloro, Stang On-Hand to Launch Interchange Ads
May 10, 2011
May 10, 2011
Association CEO John Annaloro and President Troy Stang helped launch a new set of advertisement, created by the Electronics Payments Coalition, that urge Congress to rethink its efforts to regulate interchange.
The ad, which will air on broadcast and cable stations in the Washington, DC area, talks about the domino effect on consumers from the “$12 billion payday” that law makers gave retailers when it mandated that the Fed write a rule limiting interchange fees.
“By passing the Durbin Amendment, Congress has legislated to unfairly lower costs for the retailers who benefit so dramatically from the electronic payments system,” said Annaloro. “In doing so, they are making credit unions cover the costs associated with card administration, fraud risk management, and the risk of consumer nonpayment.
“Rather than lower prices for consumers as legislators hope, the retailers will just pass along higher profits to their investors,” he added.
The Association’s leadership was in the nation’s capital as part of a coalition meeting with Congress, the Obama Administration and regulators to discuss interchange, supplemental capital, and consumer/business access to capital.
“Even though there is a carve-out for credit unions under $10 billion, we are seriously concerned about how that carve-out can work practically,” said Stang. “This ad seeks to educate legislators about the unintended consequences the amendment will have.”
The Association teamed up with the Coalition, an alliance of financial groups and payment card networks, earlier to produce targeted print and radio advertisements in Washington State urging Senator Patty Murray (D-WA) to support delaying the implementation of the amendment. The Association’s name and logo were used in the ads. Senator Murray is currently listed as “undecided” in the whip count. You can find the ads here.
Questions about the interchange issue? Contact a member of the Association’s Legislative Affairs team:
Jennifer Wagner, Director of Legislative Advocacy
Mark Minickiello, Vice President, Legislative Affairs
Stacy Augustine, Senior Vice President & General Counsel