Help us fight for Interchange

Your debit or credit card transaction goes something like this: You buy something at a retailer, either online or in your hometown, and you go to pay with your card. Your payment gets split, with a tiny percentage going to Visa or MasterCard, and the rest going to the merchant.

But now Congress is looking to change the whole system in a way that hurts American 1 and other financial institutions.

Merchants pay a fee for the privilege of using Visa/MasterCards payment infrastructure. That’s called interchange. Visa and MasterCard pay card providers, like American 1, a bit of that interchange for being a part of their system.

Everyone wins. The merchant gets an ease-of-use system for payments, Visa gets some income from the merchant, and we, as a credit union, get a fraction of that income for providing the debit or credit cards. Interchange is great because it helps credit unions of all sizes to issue debit and credit cards. We see interchange as a merchant’s fair share of the costs of this convenient system.

But it’s more than just convenience. Merchants, the ones taking the Visa or MasterCard payment, pay a small fraction for this service and reap most of the benefits, all while assuming none of the risk. American 1 has to cover the costs for fraud, card errors, and serving debit and credit card accounts. All the while, merchants benefit from the increased purchasing power such card systems provide. When you have a Visa account, for example, it’s easier to pay for more and bigger stuff. The merchant gets all that income, and only has to pay a small, single-digit percentage back to card issuers to maintain the system.

If credit unions like American 1 didn’t provide debit and credit cards to our members, imagine what would happen to local businesses. Or online retailers. Now think about all the other credit unions and banks across the nation. We all have to provide debit and credit cards, and providing that system costs money. The only way we can pay for this convenient system is to charge a fair interchange fee.

Now, Congress is looking to change the interchange fee structure, which means American 1 and other card providers could get less income for providing debit and credit cards. If this happens, our debit and credit card system could cost you, the member, more.

If interchange were reduced and could no longer adequately support American 1’s card system, you, as members, may end up paying more to use your debit and credit cards, or we may no longer be able to offer cards at all. Members of Congress should oppose merchants’ proposals to reduce interchange.

So we’re fighting back with a petition. You can stop in to our Home Office or Argyle Branch locations this week to sign the petition telling Michigan’s senators, Carl Levin and Debbie Stabenow, that we don’t want them messing with interchange income. Use those links to e-mail your senator, and your local Congressional representative, and tell them we don’t want any reduction in interchange income.

Message from the president

To our community and members:

Since the downturn of the economy in 2006, many financial institutions have suffered a significant financial loss which has led them to financial assistance from the government. American 1 Federal Credit Union has not, and is pleased to report that we have remained profitable every quarter since the dramatic economic downturn. We have also maintained a high equity percentage.

Why is American 1 different? First, we don’t finance mortgages — neither prime nor sub-prime. Second, we are not involved in commercial lending. Lastly, we don’t stretch out our lending terms, because shorter terms allow us to be flexible and to adapt to the economic environment when needed. We do not take risks with our members’ money, and we specialize in offering the auto loan expertise that you need. In fact, American 1 holds the most auto loans out of any financial institution in Jackson County.

If you’re worried about the health of your financial institution, look into their financial statements. Financials are a publicly-available way to gauge the health and safety of your credit union or bank. Even though every financial institution is insured, either by the NCUA or FDIC, not every financial institution is secure.

You can expect the same quality and reliable service from American 1 that you always have. Unlike many financial institutions, we’re not changing our name or moving out of town. We are proud to be the only financial institution offering the community more than 40 full-service, no-surcharge ATMs. We are also adding a new convenient branch location and we are continuing to provide more free, family-focused community events.

Thanks to our members and the community, American 1 has weathered the financial storm. We look forward to serving you.

David C. Puckett
American 1 President/CEO

Heads-up: Facebook page maintenance

For those looking for American 1’s new Facebook page, hang tight: we’re doing some maintenance.

Our credit union page will be back, though. Stay tuned!

New Supermarket Sweep location collects $1,600 worth of groceries

Since Felpausch is closed in Jackson, we switched our annual media Supermarket Sweep location to the Polly’s Country Market on Ferguson Rd.

The teams weren’t dismayed by the new location, however, collecting 576 grocery items worth $1,677.27 for the Food Bank of South Central Michigan on Tuesday, April 14.

Twelve teams raced around Country Market collecting specific food items. Most teams were made up of local media companies, like the Jackson Citizen Patriot, Jackson Magazine, The Salesman, and JTV.

Our own American 1 team certainly did better than last year: Shandi, Janelle, and Tina (above) earned third place by collecting 55 items worth $157.64.

“There are no losers in this event,” said Bob Randels, Executive Director of the Food Bank of South Central Michigan. “Every can of food that is collected goes to feed a hungry person and doing that makes them all winners.”

Check out pictures from the event on our Flickr page.

The Crisis of Credit, visualized

Looking for an easy way to digest the “credit crisis?”

Check out the Crisis of Credit visualized by Jonathan Jarvis. It’s a great way to get a handle on things like mortgage investors, sub-prime mortgages, and why the banking credit system is supposedly “frozen.”

Project: Zero Waste to clean up Jackson County

Get this: we’re joining forces with local waste haulers and recyclers to offer Jackson County residents a chance to do some spring cleaning.

We’re calling the day “Project: Zero Waste,” and it offers a chance for county residents drop off materials like metal, plastic, paper, Styrofoam, tires, and e-waste to be disposed of in an environmentally-responsible manner. The day will take place Saturday, April 18 from 9 a.m. to 4 p.m. at the Jackson County Fairgrounds.

Residents will have to pre-register to participate in the event. Most items will be taken free of charge, but some – like TVs, tires, and LP tanks – will carry a minimal charge.

Goodwill, Sam’s Club, Recycling Jackson, Northwest Refuse, Emmons Services, OmniSource, Rapid Refill Ink, Dart Container, Pak Mail, and HUCO Kurpinski Recycling – along with the City of Jackson, the Jackson County Fairgrounds, and American 1 – are pooling efforts and resources to ensure a “zero waste” policy.

Project: Zero Waste kicks off a weekend of events in Jackson that will celebrate Earth Day and environmental stewardship. There’s also a big event at Cascades park on Sunday, April 19 sponsored by the Jackson Outdoor Coalition.

County residents who want to participate can download a registration form online at projectzerowaste.com, or pick one up at any branch. Participating organizations will also have registration forms available. Registration forms are due by April 1.

A full list of accepted materials is also available at projectzerowaste.com.

Have a Happy New Year!

Hope everyone has a safe and happy New Year.

All American 1 branches will be closed tomorrow. We’ll reopen at our normal hours on Friday, Jan. 2.

September GreenBack group: the Dahlem Conservancy

Our GreenBack group for September is the Dahlem Conservancy, a Jackson-based environmental organization and land conservancy that oversees the John and Mary Dahlem Educational Center.

The Dahlem Center is located at 7117 South Jackson Rd., on a beautiful stretch of winding, country road, and features five miles of hiking trails through prairie, swamp, and forest land. It’s a “hidden jewel” in Jackson county, and it’s a great place to take kids to help them appreciate the outdoors.

The Dahlem Center holds many kids-focused programs, including this weekend’s Goblin Walk.

American 1 chose the Dahlem Conservancy because of its educational programs for the community, its efforts to protect “wetlands and other unique lands in South Central Michigan,” and for making the outdoors accessible to everyone in Jackson County. You can hike the trails for free during daylight hours, and the Center has a special-needs half mile trail.

We had 153 new members referred to American 1 in September, which means we’re donating $306 to the Dahlem Conservancy’s endowment fund – to make sure the center can continue to provide great programming and environmental stewardship for our area.

For questions about the Dahlem Conservancy, or programs at the Dahlem Center, call (517) 782-3453.

Now taking donations for hurricane relief

You can now make a donation to help support the American Red Cross Disaster Relief Fund to help the victims of this year’s hurricane season.

Stop by any branch to make a donation. You don’t have to be a member to donate.

For a perspective on the impact of Hurricanes Ike and Gustav, check out Boston.com’s The Big Picture blog for photos from the aftermath. Some of them will take your breath away.

Give as much or as little as you can – anything is appreciated. If you need a receipt for tax deduction purposes, just ask.

[Read coverage in this weekend's Jackson Citizen Patriot.]

Hurricane Ike affects us all, and we want to help.

Ike hits Jetty East19

Originally uploaded by eh3k

Crazy to think that the above picture was taken in Florida, not Texas – but that’s how big Hurricane Ike’s affected area was. Search for “Hurricane Ike” on Flickr and you can see personal stories of people affected.

American 1 will soon be taking donations to the American Red Cross’s National Disaster Relief Fund at all our branches to help the victims of this year’s hurricane season.

Check back for more details, coming soon!