League Urges CUs, Members to Contact Lawmakers on Interchange Bill

Your League is calling on credit unions to voice their concerns with the Credit Card Competition Act, which was introduced by Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS). The legislation poses a serious threat to sensitive financial data for millions of consumers by allowing the nation’s largest retailers to bypass established secure payment networks.

This bill represents a massive financial windfall for big box retailers who could choose to use the most inexpensive credit card routing network, regardless of how much, or little, the vendor invests in data security.

This legislation would harm:

• Consumers by limiting their credit card choices and increasing prices and cybersecurity risks.
• Small businesses by increasing the cost they pay for payment processing services that are lower quality. The effects on the credit card market will also reduce access to available credit.
• Community financial institutions through higher costs, ultimately leading to fewer card programs.

CUNA and your League issued an action alert calling on stakeholders to reach out to policymakers, resulting in more than 5,000 messages of concern sent to date. We also called on credit unions to activate their members using CUNA's Member Activation Program.

Potential supporters of this bill should be fully aware of the negative impact it will have on financial inclusion, and it’s our job to make sure they know.