CREDIT UNION WIN: America’s Credit Unions Applauds Decision Not to Offer Credit Card Swipe Fee Amendment

Scott Simpson

Following the news that Senator Marshall would no longer offer the Credit Card Competition Act as an amendment in a markup slated for this week, Scott Simpson, President/CEO of America’s Credit Unions, offered the following statement:
​
“America’s Credit Unions, leagues, and credit unions worked hard to keep Senator Marshall’s credit card swipe fee amendment off of the Senate Agriculture Committee’s crypto bill. But, as we have said, attempting to attach these credit card mandates to a cryptocurrency bill does not change the underlying facts. The Credit Card Competition Act is bad policy that would disrupt a secure and well-functioning credit card system in ways that hurt consumers and small financial institutions while delivering a windfall to the largest retailers in the country. Forcing routing mandates into the payments system increases fraud risk, weakens consumer protections, and ultimately limits access to affordable credit for millions of credit union members. Lawmakers should continue to reject efforts to revive this flawed policy.”

"Despite their mission-driven, not-for-profit structure, credit unions still felt the consequences of the 2010 Durbin Amendment on debit interchange, as price controls distorted the entire financial ecosystem. Costs and lost revenues were shifted onto credit unions, weakening the very institutions that exist to serve working families and local communities. Highlighting the negative consequences of the Credit Card Competition Act were the focal point of America’s Credit Unions and our league partners’ strategic engagement with Senate Agriculture Committee Chairman John Boozman and fellow committee members. More than 3,700 direct messages in less than two weeks have been sent to members of Congress on the consequences of the Credit Card Competition Act since it was reintroduced earlier this month.”

---