ACU’s Simpson Takes Interchange Fight To Washington Economic Forum
By CU Today Staff —
WASHINGTON--The credit card interchange system should be protected, especially from policies like the Credit Card Competition Act, was the focus for America’s Credit Unions President/CEO Scott Simpson at a Washington event on the state of the economy Tuesday, ACU reported.
The event, sponsored in part by the Electronic Payments Coalition, brought together policymakers and industry leaders for a discussion on economic issues affecting American consumers.
Simpson shared the credit union perspective on affordability, access, and choice for everyday Americans before Treasury Secretary Scott Bessent took the stage. White House Council of Economic Advisers Chairman Christopher Phelan also addressed the event.
Simpson shared how the Credit Card Competition Act (CCCA) would disrupt the credit card payments system and why credit unions are particularly vulnerable to the price controls in the legislation.
“This affects the smallest of card issuers. We have 4,200 credit unions in America. All of us put together are smaller than the largest banks in this country and we’re horrified by the reality of this legislation. It has more significant impact on our capacity to safely and soundly extend credit to our membership than any other policy issue that we contend with,” conveyed Simpson when discussing the real impact of the CCCA.
“Its effect on small issuers is bad, and it’s especially bad for credit unions. When you're forcing this revenue onto the balance sheets of big box retailers, you not only harm the system, you disproportionately harm the ability of credit unions to earn capital,” he continued. “Every dollar they lose in revenue from the interchange system reduces their capacity to take in deposits or make loans.”
Diminished card revenue will result in less affordable credit, less ability for credit unions to deploy resources to protect members from fraud and scams, and less capital available for small businesses, he added.
Instead, Simpson said Congress should focus on deregulatory efforts that allow credit unions to expand even deeper into communities in need, noting that every spent complying with “onerous, duplicative regulations” diverts time and resources away from members.
Shortly after Simpson’s remarks, Treasury Secretary Scott Bessent took the stage, discussing issues ranging from international affairs to Main Street affordability, Trump Accounts, and artificial intelligence, ACU noted.
Originally reported by CU Today.