It's a Visa rule and not something being initiated by the credit union. If you offer Visa branded debit cards then your institution may also be affected. If so, you should have updated your agreement. Also, Visa requires an annual disclosure to the consumer. This is from Wolters Kluwer:
Visaฎ USA (Visa) recently amended its operating rules. These amended rules affect card issuers that enable Non-Visa Debit Transaction processing. This article will explain the changes and help you determine whether your financial institution is affected. Most importantly, these rule changes may affect your cardholder agreements or other account opening disclosures and could require your financial institution to provide cardholders with an annual mailing.
Prior to these rule changes, Visa allowed certain bill payment products and certain merchants to initiate payment transactions through non-Visa networks without a personal identification number (PIN). All other transactions initiated by cardholders on non-Visa networks required cardholders to enter a PIN.
In response to an anti-trust inquiry by the Department of Justice (DOJ) and several state attorneys general, Visa amended its operating rules to make PIN-less non-Visa transactions more widely available. The DOJs press release provides more detail.
A summary of the Visa Rules
The new rules allow an issuer to permit a cardholder to initiate a Visa debit card transaction on a non-Visa network without a PIN anywhere the card is accepted. However, Visa requires a card issuer permitting such transactions to satisfy several requirements. Under the Visa rule, financial institutions that enable Non-Visa Debit Transaction processing must provide cardholders with certain disclosures. The disclosures must include:
A list of the debit networks for which such transactions are enabled
Examples of the types of actions a cardholder may be required to make to initiate a Visa transaction, and
A statement that certain provisions (such as the Visa zero-liability program) do not apply to such non-Visa transactions
The Visa rule also requires that these disclosures be provided on an annual or more frequent basis.
The rule was effective July 1, 2008. For institutions that enabled Non-Visa Debit Transaction processing prior to July 1, 2008, there is a January 1, 2009 mandatory compliance date. For institutions that did not enable Non-Visa Debit Transaction processing prior to July 1, 2008 but plan to must provide Visa with a 30-day notice prior to implementation. Visa Rule 1.10 et seq. provides substantial penalties for non-compliance.http://www.bankersonline.com/forum/ubbth...rue#Post1083310