Merchant Lynx Serices = March data, in Millions, after eliminating duplication from gateway transactions Debit card usage at point-of-sale locations grew nearly 23% between March 2005 and 2006 while pin-based transactions at ATMs, the traditional primary point-of-use, actually declined 4% during the same period, further emphasizing the trend that consumers are increasingly using debit to pay for their lattes as well as to get cash. Merchant Lynx Serices What Does it Mean for Credit Unions? With debit card usage continuing to rise, members’ choice of their primary financial institution (PFI) becomes more important. Credit unions that are able to secure, and reinforce, this status will realize greater transaction volume and higher interchange income from members who utilize debit cards.Merchant Lynx Serices A case-in-point is Wings Financial Federal Credit Union ($1.6 Billion in Apple Valley, Minnesota) that already generates 29% of its non-interest income from debit card interchange due to high debit card usage among its members, compared to 16% from credit cards. Despite this already high number, to solidify its position as the PFI for their members the credit union, with 75% checking account penetration, is rolling out a cash-back debit rewards program for its members in 2007.Merchant Lynx Serices “We see debit cards replacing cash and checks” says Timothy Keegan, EVP/CFO for Wings Financial, “and since checking accounts are critical for member relationships, offering debit cards will allow us to serve our members better. We see this as an opportunity to give back.” In an era of tight margins and slowing member growth, the ability to generate member-friendly non-interest income from sources such as this and maintain existing member relationships’ is critical to credit unions’ business model. Merchant Lynx SericesSpecialties: Testimonials for Merchant Lynx Services:Rino’s Pizza246 Main StNew Paltz, NYJust wanted to take a few minutes to thank you for everything you did for us. You said the process was going to be smooth and painless and it was. I just received my first statement and the savings were unbelievable. In a time where everyone over promises and under delivers it is good to see a company that delivers what was promised.Again thanks for everything,Rino