Now that the credit union tax exemption seems all but sewn up, the Credit Card Competition Act has resurfaced. (Disclaimer so I don’t get calls from the trade associations: Continue the Don’t Tax My Credit Union fight until the budget bill is passed.)
What Is the Credit Card Competition Act?
Senator Richard Durbin (D-Ill.) is attempting to tack Durbin II onto new legislation, The GENIUS Act (a bill to regulate stablecoins), as his parting gift before her retires. The CCCA, originally introduced by Senators Durbin and Roger Marshall (R-Kansas), is being sold as a way to inject more competition into how credit card transactions are processed. Specifically, it would force credit unions to offer at least two networks for processing credit card transactions—one of which can’t be Visa or Mastercard.
Who Really Wins Here?
Not card issues nor consumers.
This bill is heavily backed by big box retailers that want to pay lower interchange fees. The theory is that could lower costs for them, so they can pass it on to the consumer. But those savings? They’re not guaranteed to make your members’ shopping carts.
When Durbin I became law, it merely curbed interchange income on debit cards, and retailers showed no signs of decreasing prices. This bill would also require two networks at a cost to credit unions’ bottom line and operations.
America’s Credit Unions President/CEO Jim Nussle asserted, “[The CCCA] would drive up costs for Main Street America—consumers, small businesses and small financial institutions, including credit unions. The disruption to the credit card payment system would negatively affect consumers’ access to needed credit and services they depend on. This amendment is a poison pill to the legislation, and we urge Senators to oppose it as it would hurt hardworking Americans.”
If the legislation were to pass, the savings for big retailers would come at the cost of higher fees for credit, fewer options (competition, even?) and reduced fraud protection for credit union members.
Credit Unions Are Fighting Back
Credit unions and community banks are, in a rare instance, united on this: The CCCA would hurt—not help—the people they serve.
They recently joined other financial trades in a letter to lawmakers, warning that, “Any legislative initiatives to expand the power of the federal government to intervene in the U.S. credit card market” would reduce choices, increase costs and raise fraud risks.
According to May 2025 research from the University of Miami, “Smaller institutions without market power will effectively lose money on each transaction, reducing their viability and thereby jeopardizing credit access in the communities they serve.” That’s particularly important for credit unions’ underserved communities.
In other words, smaller credit unions could be forced to operate at a loss whenever their members swipe their card. Definitely not a competition booster.
Tough Pill to Swallow
The cleverly named bill (Congress is good at that) would tilt the playing field in favor of the big-box retailers and against credit unions and their members.
Chuck Fagan, CEO of Velera, flat-out stated, “This legislation would benefit large retailers at the expense of consumers, small businesses and the majority of U.S. financial institutions. Additionally, the legislation would weaken cybersecurity protections and increase fraud. We do not see this as a win for credit unions or their members.”
Nussle didn’t mince words either. “This amendment is a poison pill to the legislation, and we urge Senators to oppose it as it would hurt hardworking Americans.”
So, What’s Next?
America’s Credit Unions, DCUC and industry partners, like Velera, are keeping the pressure on in Washington. They’ve made it clear to lawmakers that this amendment doesn’t belong in the GENIUS Act—or anywhere else for that matter.
As a true movement of the people, credit unions should also be asking their members – who are also constituents of the members of Congress, to express their opposition to the CCCA with their senators and representatives. People in their districts are the voices that elected officials hear.