Shared Branching

What is Shared Branching?
Shared branching is a cooperative network that allows members of participating credit unions to perform transactions at a location owned by another credit union.

Shared Branching Terms:
Acquirer Credit Union: A credit union that opens its branch(es) to members from other credit unions to make financial transactions.

Issuer Credit Union: A credit union that allows their members to perform financial transactions at shared service outlets owned by other credit unions.

How does Shared Branching work?
The shared branching network is based closely on the ATM network. Your data processor sets up a link to a common switch (either e-Funds, FiServ, or the CUSC Next Generation switch) that allows transactions to take place from credit union to credit union.
Acquirer credit unions are set up with a special computer interface that is part of the teller platform. This interface varies from data processor to data processor. When the member approaches the teller, it is just as if they are performing the transaction in their own credit union.
Transactions and the associated fees are settled daily through the credit union's corporate account. Reports are generated on a daily and monthly basis.

Fee Structure:
The fee matrix for transactions is fixed, with different transactions incurring different levels of fees. The Issuer credit union pays a fee for each transaction that is performed at an Acquirer location. The Acquirer credit union earns income from each transaction. Nationwide, the most popular type of transaction is a deposit. Deposits make up approximately 80% of shared branching transactions.

Demographic information:
If you are interested in learning more about how shared branching can benefit your credit union, I can show you where your members live in relation to the Acquirer locations currently in our state. Please contact me for further information.

Articiles and information on the benefits of Shared Branching:
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Further questions?
Please contact jmerrill@njcul.org at the league any time, (800) 792-8861.