Credit Unions, Community Banks Urge Congress to Reject Durbin-Marshall Credit Card Mandates

America’s Credit Unions, the Defense Credit Union Council, and the Independent Community Bankers of America sent a joint letter to Congress strongly opposing the Durbin-Marshall credit card mandates, warning the proposal would harm consumers, small businesses, and community financial institutions while delivering a windfall to the nation’s largest retailers. 
 
In the letter, the organizations caution that the bill would expand the failed Durbin routing requirements to credit cards, a move that history shows does not benefit consumers. 
 
“These misguided mandates would expand the failed Durbin routing requirements to credit cards, harming consumers, small businesses, and community financial institutions while delivering a windfall to corporate megastores,” the groups wrote. 
 
The letter points to evidence from the original Durbin amendment showing consumers did not see promised savings, as well as studies on how the proposed Credit Card Competition Act could impact the economy: 

• According to the Government Accountability Office, absent Durbin, 65 percent of noninterest checking accounts at covered banks would have been free. After the amendment took effect, 98 percent of merchants raised prices or kept them the same. 

• 77 percent of cardholders earning under $50,000 carry a rewards card that could be jeopardized under the proposal. 

• Oxford Economics estimates the Durbin-Marshall bill could cost the U.S. economy $228 billion and 156,000 jobs by undermining rewards programs that support travel and tourism. 

• Federal Reserve data shows community financial institutions experienced a 30 percent drop in interchange revenue after the original Durbin amendment. 

• A Texas A&M study estimates the bill could double card fraud to $20 billion over the next decade while reducing the ability of financial institutions to invest in fraud prevention and data security. 

 
“In short, the Durbin-Marshall mandates would benefit corporate megastores at the expense of consumers, small businesses, and community financial institutions,” the letter concludes. “We urge Congress to reject this harmful amendment in any form.” ​

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