By the Division of Banks

Ability of Credit Unions To Offer Credit Cards Issued By Third-Parties

Pursuant to Mass. Gen. Laws chapter 171, section 59A, credit unions may issue credit cards to its members. Although section 59A does not expressly authorize a credit union to contract with a third party to issue credit cards to members, it is the Division's position that the authority for such activity is included within the authority to issue credit cards. All such plans to contract with a third party to issue credit cards to credit union members must be submitted to the Division for approval.