Ohio Credit Union League President Outlines Consumer Harm Created by Credit Card Competition Act

Paul Mercer

Ohio Credit Union League President Paul Mercer last week penned an op-ed for Cleveland.com outlining the harm of the Credit Card Competition Act and the elimination of interchange fees, otherwise known as “swipe fees.”
 
In the op-ed, Mercer explains how interchange fees pay for critical fraud and security protections for consumers and by eliminating these fees – usually a small percent of any purchase – the Credit Card Competition Act would put consumers at risk.
 
“The Credit Card Competition Act could eliminate access to these vital consumer protections and put Ohioans at risk of more data breaches by eliminating the funding source financial service providers and credit card companies use to pay for these important services. At a time of economic uncertainty, the last thing Ohioans should have to worry about is getting their personal information hacked or stolen. Interchange fees help pay for the protections that give consumers peace of mind that when they go to use their credit card at the grocery store or the pharmacy, their information will remain safe and confidential,” writes Mercer.
 
Ohio Credit Unions, which serve as member-owned, not-for-profit financial institutions for more than 3.3 million Ohioans, are focused on protecting credit union members and their financial well-being. By rejecting the Credit Card Competition Act, lawmakers in Washington can help ensure Ohio credit unions can continue to help Ohioans enjoy the convenience of credit cards while maintaining their peace of mind that their personal information is safe and secure.
 
Read more HERE and key points below:
 
·       Ohio’s 204 credit unions serve as trusted lenders to small businesses across the state and as trusted financial service providers to nearly 3.3 million Ohioans. Community-based, member-owned, and not-for-profit, credit unions are widely trusted as financial institutions that have the best interests of the community in mind.
 
·       The Credit Card Competition Act would make it more difficult for Ohio credit unions to serve our members and Ohio small businesses. It would make credit card users less safe and decrease access to credit for Ohioans across the state.
 
·       The use of credit cards has become almost ubiquitous in recent years, providing both security and accessibility that allows Ohioans to cover costs ranging from paying for groceries to covering unexpected medical bills. And credit cards often offer safety and fraud protections that other methods of payment cannot.
 
·       To pay for that security and accessibility, credit card payments often include an interchange fee – sometimes referred to as a “swipe fee” – a small fee that allows customers to maintain access to fraud protection, secure transactions, and safety from would-be hackers.
 
·      The Credit Card Competition Act could eliminate access to these vital consumer protections and put Ohioans at risk of more data breaches by eliminating the funding source financial service providers and credit card companies use to pay for these important services.
 
·       Customers facing higher fees and fewer protections may choose to use their credit card less, meaning less business for small businesses in Ohio and less money flowing into our state’s economy.
 
·       Ohio’s credit unions are motivated by people, not profits.
 
·       That’s why we encourage our elected officials in Washington to look out for the best interests of the Ohioans they serve and oppose the Credit Card Competition Act to ensure that consumers can maintain the safety, security and accessibility they’ve come to expect when using their credit cards and supporting Ohio’s small businesses.

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