“Our focus is the person who needs a fraudulent charge resolved, access to an account from overseas, or help keeping the household finances on track.” That’s how Anthony Hernandez, president and CEO of the Defense Credit Union Council (DCUC), framed his group’s October 3 letter on New Jersey’s A1921, a bill about how credit-card transactions get routed. The letter argues that the people behind those transactions deserve a seat in the conversation.
What the Bill Does
A1921 would bar payment systems from limiting credit-card processing to a single network or to affiliated networks. It would also stop them from restricting a merchant’s choice of routing. The stated goals are more competition and lower costs for consumers. But the bill doesn’t require merchants to pass any processing savings along to customers.
That gap is central to DCUC’s argument. The letter, addressed to Assembly Consumer Affairs Committee Chairman William B. Sampson IV and copied to committee members, separates what merchants might save from what military households might spend or lose in card benefits.
“A merchant’s processing savings and a military household’s savings are not the same calculation,” said Jason Stverak, DCUC Chief Advocacy Officer. He added that for veteran-owned businesses, payment reliability and acceptance costs belong in the discussion too.
Where Interchange Money Goes
The letter stresses that credit unions are member-owned, not-for-profit cooperatives. Earnings flow back to members as lower loan rates, better savings rates, and reduced fees. Fraud prevention, cybersecurity, cardholder assistance, and rewards all take ongoing investment.
DCUC’s June 22 letter to the House Financial Services Committee made a similar case, describing how interchange revenue helps pay for those services, including support during deployments and military moves. “Interchange supports the work behind the card,” Stverak said, pointing to fraud response, secure payments, and help when something goes wrong.
The Federal and State Charter Wrinkle
The letter also tackles preemption and the dual-charter system, in which credit unions can be chartered federally or by a state. NCUA’s June 2026 rule states the agency’s position that conflicting state limits on federal credit unions’ interchange fees are preempted. It doesn’t automatically extend that protection to state-chartered credit unions. DCUC adds that A1921’s routing provisions need their own legal analysis.
The worry is a cost gap. If a state-chartered credit union has to absorb processing or compliance expenses that a federal competitor avoids, the disparity could last. That might nudge institutions toward converting charters and strain the state side of the system. DCUC’s September 17 letter to NCUA asked for a separate assessment of state-chartered protections and the options available.
“This is about operating costs and the resources available for members—not simply which regulator supervises an institution,” Stverak said. That’s why the letter speaks to both federal and state-chartered credit unions.
New Jersey’s Military Footprint
The letter lists the state’s military presence: Joint Base McGuire-Dix-Lakehurst, Picatinny Arsenal, Naval Weapons Station Earle, Atlantic City Air National Guard Base, the National Guard Training Center at Sea Girt, Warren Grove Range, and Lawrenceville. It also covers Coast Guard facilities in Cape May, Atlantic City, and along the shore, plus Guard armories and Reserve centers statewide. Credit union access spans on-base services, nearby branches, and digital banking.
Part of a Wider Push
The New Jersey letter follows DCUC correspondence in Colorado, Pennsylvania, and New York. In Colorado, letters including the May 7 note to Governor Jared Polis addressed costs that reach credit unions through networks and processors, and how those tie to services for military members. Colorado’s SB26-134 dealt with interchange on taxes, while A1921 deals with credit-card routing.
DCUC asks that the letter be included in the Committee’s record. It also offers to meet with committee members and leaders of federal and state-chartered credit unions to discuss operating costs and the services military members use.
What It Means for You
If you’re a servicemember, veteran, or military family in New Jersey, this bill could touch the fraud help, overseas account access, and card perks you count on, even though it’s aimed at merchants and networks. Watch how A1921 moves, check what your credit union says about it, and if it affects you, tell the Committee. Lawmakers weigh the voices they hear.