The Independent Community Bankers of America (ICBA) released the results of a new poll on proposed credit card routing restrictions.
The proposed restrictions stem from the Credit Card Competition Act (S. 1838/H.R. 3881), which would require banks to give merchants a choice of at least two different networks to process credit card transactions.
The new ICBA poll, conducted by Morning Consult, found that 66 percent of those polled said a change to credit card transaction technology is risky. Further, 62 percent said changing the technology that credit card servicers now use would hurt the economy, while 60 percent said it would negatively affect inflation and 57 percent said it would adversely impact consumer spending power.
ICBA officials said the change would require all banks — including community banks — to subsidize the changes it would impose on the payments system.
“ICBA and the nation’s community banks strongly oppose the introduction of controversial legislation to create new credit card routing restrictions — and new polling shows U.S. voters are likewise concerned about the harm it would pose to Main Street community banks,” ICBA President and CEO Rebeca Romero Rainey said. “Applying routing restrictions to credit card transactions would reduce access to credit card services in local communities, weaken cybersecurity protections, and end popular credit card rewards programs solely to benefit large retailers like Amazon and Walmart. We call on every member of Congress to join us in opposing this anti-consumer legislation, including attempts to pass it via the National Defense Authorization Act.”
In addition, voters expressed continued support for the community banking business model, which would be harmed by the proposed credit card routing restrictions. Specifically, 62 percent prefer a community banking model that utilizes a long-term outlook that promotes safety and soundness over generations, while 61 percent said smaller community-based banks should not be penalized for the actions of the largest and riskiest banks. Also, 53 percent said the best banking model for consumers is personal relationships with a bank based in their communities.
While the Credit Competition Act stalled in Congress last year, the Senate bill’s sponsors, U.S. Sens. Richard Durbin (D-IL) and Roger Marshall (R-KS) are seeking to attach it to the pending National Defense Authorization Act.