A recent op-ed by Delaware Credit Union Association CEO John Bratsakis, and published by Delaware Online, offers a look at the unintended consequences of a Delaware bill that would exclude tips from interchange fees.

Bratsakis makes a critical point that is often overlooked: interchange fees are not arbitrary costs, they are essential to maintaining the secure, efficient systems consumers rely on every day.

“These fees aren’t simply a cost — they fund the services and infrastructure that make card payments fast, reliable, and secure for everyone,” Bratsakis writes. “For Delaware’s credit unions and community financial institutions, interchange revenue helps cover the cost of fraud protection and reimbursement for members when unauthorized transactions occur, secure payment processing networks and investment in technology that keeps transactions safe.”

The op-ed emphasizes that reducing or restructuring these fees without fully understanding their role could have ripple effects, particularly for smaller, community-based institutions. Credit unions depend on this revenue to provide critical member protections, invest in cybersecurity, and ensure seamless transaction experiences.

Read the entire op-ed published by Delaware Online here.