What's the Dilly-o with card issuing & processing: a buyer's guide for credit unions

The Dilly-o

The debit interchange fee cap applies only to issuers with $10 billion or more in assets, and smaller issuers are generally exempt.²³ We'd spend this year testing your processor's outage plan and your exit terms before your next renewal, because those are the parts you control.

How we'd size up a vendor

1. Resilience - when authorizations or postings fail, how fast do you detect it, and who fixes the member's account? Ask how they handled their most recent incidents, including late postings and expired holds.
2. Platform fit - does the provider connect to your core and your digital banking platform for card status, reissue and controls? Ask to see it working on your core, not a demo environment.
3. Program scope - does one provider cover debit, credit, ATM, instant issuance and disputes, or will you stitch several together? Each extra vendor is another contract to manage and another door for an examiner to open.
4. Exit terms - what will it cost to leave, and how much notice must you give? Get deconversion fees, data return and renewal dates in writing before you sign.

What changed this year

An October 27, 2025 amended judgment limited the court's vacatur to the debit fee standard in 12 C.F.R. 235.3(b).⁴⁵ The judgment left the routing and exclusivity rules in place.⁴⁵ A Kentucky court upheld the same rule on September 15, 2025, and the Sixth Circuit was set to hear that appeal on October 22, 2026.⁶ The Fed's October 2023 proposal to cut the cap to 14.4 cents plus 0.04% plus 1.3 cents has not been finalized.⁷

Will it work with your systems?

Depending on how your credit union configures it, Jack Henry's Banno lets members activate a new card, reorder a card and report a card lost or stolen.⁸ Banno sends the active date, reissue code, status and status reason to Symitar, and staff can enable or disable a card in Symitar file maintenance.⁹⁸ Banno's Full Service Credit is not available to all credit unions yet.¹⁰ Alkami's platform for Strata Credit Union includes card management alongside payments and transfers.¹¹ We've confirmed that CPI Card Group is listed for credit unions on Symitar in the Jack Henry Fintech Integration Network.^C Ask your provider which card actions flow both ways between their system, your core and your digital banking platform, and which still need staff to key in.

What other credit unions did

Financial Center evaluated several providers and chose Velera for its credit union focus.¹²¹³ Debit and ATM support starts in July 2026, with credit following in August.¹²¹³ Velera will start debit processing for River Valley Credit Union in September 2026, with credit following in June 2027.¹⁴ When a service interruption left CEFCU members unable to use their debit cards in most cases, its CEO said the credit union was holding its processor accountable.¹⁵¹⁶

What your examiner will ask

Part 748 defines your member information systems to include systems your service providers maintain.¹⁷ We'd treat your card processor as part of your security program for that reason. Regulation E sets member liability for unauthorized transfers at up to $50, up to $500 or unlimited, depending on timing.¹⁸ Have your processor due diligence, its security and incident notice terms, and your outage playbook ready, including how you make members whole on fees.

What it costs

Card processors for credit unions don't publish their pricing, so expect a quote built on your card volume and the services you pick. Financial Center's choice of Velera was announced on January 20, 2026, with debit and ATM support starting that July.¹³ We'd leave room in your own plan for a gap like that between signing and going live. When you leave, vendors might pull back earlier incentives and charge for deconversion and data migration.¹⁹ Some states help: a New York law protects against certain auto-renewing contracts.²⁰ We'd get the exit costs on the table before you sign.

Food for thought

We think the work that pays off is plain: keep your processor's outage plan tested and your exit terms in writing. We'd bring the board a one-page view of your processor's recent incidents, renewal date and exit costs each year.