News

Co-Op Network white paper examines possible effects of debit settlement

August 20, 2003

ONTARIO, Calif. -- In light of the recent out-of-court settlement in the merchants' lawsuits against MasterCard and Visa, the Co-Op Network has issued a white paper titled "The Changing Debit Landscape" that it says will help its nearly 1,500 member credit unions prepare for subsequent changes in the debit payment arena.

The legal wrangling surrounding the national card associations and their "Honor All Cards" rules lingered for seven years. According to a news release, Co-Op Network sent periodic updates to its credit union constituency, culminating with the release of the white paper.

The paper, prepared with the assistance of the Savage Consulting Group, examines possible impacts on interchange revenue, pricing and PIN-based terminals, among other topics.

"Now that MasterCard and Visa have agreed to eliminate rules requiring merchants to accept their branded debit cards, profound shifts in the debit payment arena can be expected in the near future and beyond," said Co-Op Network CEO Robert Rose in the release. "(The white paper) can hopefully serve as background information for helping our member credit unions embrace change within the industry and also adopt measures and plans that will withstand the unpredictable marketplace."

Copies of "The Changing Debit Landscape" are now available at the network's Web site.

The Co-Op Network continues to follow developments in a separate lawsuit filed by a group of merchants headed by Home Depot, according to the release.