Statement of TBA CEO Chris Furlow on card rate and interchange cap proposals

Durbin-Marshall & Lofgren-Gooden Proposals are “Politically Appealing” but “Government Price Fixing”

“Card rate and interchange caps sound politically appealing but government price fixing always fails to solve affordability issues, and it ultimately leads to unintended economic consequences.  

Any serious consideration of the data shows card rate caps would hurt small businesses that rely on approximately $3.6 trillion in annual spending on consumer credit cards. In Texas, over 11 million current cardholders could lose access to credit. They would force working families and consumers facing emergencies to use under-regulated and more expensive alternatives like payday lenders, and they would reduce card rewards and benefits that consumers want. Further, interchange caps will result in lost jobs and billions of lost economic activity.

The card rate and interchange caps being proposed are a dream come true for Massachusetts Sen. Elizabeth Warren, Vermont Sen. Bernie Sanders, and Illinois Sen. Dick Durbin who have pushed these anti-free market ideas for years. That’s why so many organizations like Americans for Tax Reform, National Taxpayers Union, the Small Business Prosperity Council, Independent Women’s Forum, and ALEC Action oppose these government interventions that will hurt the Americans its supporters say they want to help.

We urge Members of Congress not to fall for the Warren-Sanders-Durbin price-fixing approach that underpin the Durbin-Marshall and Lofgren-Gooden bills and instead focus on real affordability solutions.”

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View the data:

American Bankers Association Research HERE.

Electronic Payments Coalition Research HERE.

Pro-Free Market Organization Joint Letter HERE.