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Posted: Feb 21, 2018
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Author: Lou Grilli

Use of debit continues to grow as consumers shift their cash and check spend to the convenience of plastic. According to the Fed, the number of debit payments increased from 56.5 billion in 2012 to 69.5 billion in 2015, the largest increase in the number of payments among the payment types. More recently, and more relevantly, Trellance credit unions saw their Visa Signature Debit transactions grow year over year in January 2018 by 8.83%. Yet at the same time, credit unions are seeing a decline in average debit interchange. So, what is going on?

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Posted: Jan 3, 2018
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Author: Lou Grilli

The Trellance Team weighs in on what's to come

As hard as it is to believe, it’s once again time to start in on all our New Year’s resolutions. But first, we wanted to step back and share our predictions for 2018. The thought leaders of Trellance gazed deeply into their crystal balls and came up with their vision for what might happen in this new year, and the implications for the credit union community.

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Posted: Dec 14, 2017
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Author: Lou Grilli

It’s imperative for credit unions to understand interchange – the biggest component of non-interest income.

One of the most misunderstood, and possibly the most misaligned topic in the credit and debit card world is interchange. At a summary, it is a fee paid by a merchant, paid to the issuer, each time a credit or debit cardholder uses a card, in a store or online. The fee covers the cost of processing the credit or debit card; for a credit transaction the fee reimburses the issuer for the interest on carrying the balance during the cardholder’s debt repayment grace period; and the fee is intended to address the cost for zero fraud liability, which reimburses the cardholder in case of fraud. In addition, higher interchange is charged for signature rewards credit cards, to cover the cost of additional cardholder benefits such as cash back or auto rental collision damage waiver. The practice of a merchant paying the issuer interchange was established in 1971, when Bank Americard set 1.95% as the standard rate as compensation for the risk of card-issuing banks. Interchange is also paid to the ATM owner each time a cardholder gets cash out. Seems simple enough, but there’s much more complexity to it.
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Posted: Dec 1, 2017
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Author: Lou Grilli

[Editor's Note: This article was previously published on “Anthem”, the online News & Info site of the Northwest Credit Union Association, and has been modified.]

When members think about services provided by their credit union, they might first think about their share draft account, a debit card, bill pay, loans, and credit cards - basic services offered by almost all financial institutions. But, something new is happening when it comes to these services. No, not new services, but rather something called “banking on the fringes.”

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Posted: Nov 10, 2017
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Author: Lou Grilli

Apple joins a growing list of ways friends and family can send money to each other. Will Apple find success with their version?

Apple launched its person-to-person (P2P) payments service, Apple Pay Cash, riding on top of Apple’s iMessage, thereby joining a long list of other tech companies who also offer P2P, including PayPal, Square, Venmo, Facebook, Google, SnapChat, Zelle, PopMoney, and several others. With this service, Apple is hoping to generate new P2P users in a demographic that typically shied away from P2P apps more popular with younger users, and possibly spur increased use of Apple Pay, the tap-to-pay capability of iPhones and Apple Watches.
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