The Consumer Bankers Association (CBA) is one of 11 trade associations that have raised their voices in opposition to an effort to attach the Credit Card Competition Act to an appropriations bill.
The Credit Card Competition Act, sponsored by U.S. Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS), would require banks and financial institutions with assets over $100 billion to enable at least two credit card networks to be used on their credit cards instead of just one. Further, at least one of those networks must be a card network other than Visa or Mastercard, which control some 80 percent of the market. The lawmakers said this would create more competition and choice and have the effect of reducing fees for consumers.
The trade associations penned a letter to House and Senate leaders, arguing against the bill.
“Far from increasing competition in the credit card marketplace, this legislation will hurt consumers and benefit big box retailers by reducing the number of credit card issuers competing for consumers’ business, removing a consumer’s choice of preferred card network, wringing out the competitive differences among card products, limiting popular credit card rewards programs, and putting the nation’s private-sector payments system under the micromanagement of the Federal Reserve Board,” representatives of the associations wrote in a letter.
Further, they expressed their opposition to including the bill’s language as an amendment (1161) to H.R. 4366, the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act of 2024.
“The financial services industry stands united in opposition to the effort by Senators Durbin and Marshall to delay funding for veterans and our military in order to gift a massive government handout to Walmart, Target, and other big-box retailers. The Durbin-Marshall credit card routing legislation has no relevance to military or veteran spending whatsoever. We call on both Senators to promptly abandon their effort to use the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act to secure government favors for big-box retailers at the expense of consumers, small businesses, and small financial institutions,” they added.
Along with CBA, it was signed by the American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Credit Union National Association, Defense Credit Union Council, Electronic Payments Coalition, Independent Community Bankers of America, Mid-size Bank Coalition of America, National Association of Federally-Insured Credit Unions, and the National Bankers Association.