Pennsylvania Credit Union Leaders Talk Exchange and Consumer Protection | 2022-06-16

Michael Wishnow, vice president of the CrossState Credit Union Association, appeared with Beki Landon, senior vice president of finance at Belco Community Credit Union recently on Pennsylvania Journalists to discuss the growing use of debit and credit cards, interchange and consumer protection.

“We are seeing many trends among members wanting to use debit and credit cards. The pandemic has really grown as fewer people are going to stores, a lot less money is changing hands,” Landon said.

She explains how the use of debit and credit cards continues to grow rapidly as more people use digital wallets and contactless payments. It also discusses the risk of fraud associated with card data.

“Most anti-fraud departments proactively monitor trends. If they see a series of transactions that seem shady, they will let the member know and the member can then check whether they made that transaction or not. If not, they’ll stop it before it gets out of control,” Wishnow said.

Landon adds that while members have “a lot of exposure” on their cards, credit unions have coverage, systems in place, and activity monitored.

“Swap is the fat that makes it all work,” Wishnow said. “Merchants pay a portion of their sales to the system, and that system includes the networks moving the money, as well as the financial institution the store uses. This money circulates and this is what guarantees a transparent transaction for the consumer.

Wishnow adds that interaction is an “extremely small percentage” of the overall transaction and is borne by the merchant.

Landon and Wishnow also discuss members’ financial situation with inflation. The full interview can be found below.

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