Banking and credit union associations call Congress to reject credit card mandates

In a joint letter to Congress, the American Bankers Association, America’s Credit Unions, Bank Policy Institute, Consumer Bankers Association, Electronic Payments Coalition, Independent Community Bankers of America, Mid-Size Bank Coalition of America, and National Bankers Association expressed their rejection of the Credit Card Competition Act (S. 1838 Durbin-Marshall bill).

The letter highlighted that implementing credit card interchange fee regulations could harm consumers, referencing recent research. The research estimates that the Durbin-Marshall bill—which would extend the routing requirements of the Durbin amendment to U.S.-issued credit cards—could increase the cost of checking account services for consumers by $1.3 to $2 billion annually, with low-balance consumers shouldering a disproportionate share of these costs. The letter also mentioned the bill would “open the door to fraud, hamper rewards programs, and limit the allocation of credit to individuals and small businesses.”

See the full letter to Congress here.