Credit Union, Banking Groups Urge Congress To Reject Credit Card Competition Act, Durbin Expansion
By CU Today Staff —
WASHINGTON —A coalition of credit union and banking groups Thursday sent a joint letter to members of Congress strongly opposing the Credit Card Competition Act and any expansion of the Durbin amendment.
The group includes the Defense Credit Union Council, America's Credit Unions, American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Independent Community Bankers of America, Electronic Payments Coalition, Electronic Transactions Association, Mid-Size Bank Coalition of America and National Bankers Association.
The letter warns that government intervention in the U.S. credit card market would harm consumers, small businesses, and community-based financial institutions by reducing choice, increasing costs and fraud risks, and creating economic challenges for smaller institutions. The letter highlights several key concerns:
The letter also underscores that the U.S. payments ecosystem is already highly competitive, offering numerous options from credit and debit cards to real-time payments and digital wallets. “The payment card system is convenient, secure, and essential to the American economy,” the groups wrote. “The Durbin-Marshall bill jeopardizes consumer protections, rewards programs, and access to credit—all to benefit a handful of the largest merchants.”
Originally reported by CU Today.