Credit Unions Oppose Credit Card Routing Legislation

The Credit Union National Association (CUNA) stands together with America’s Credit Unions in opposition to legislation that would create new government mandates for credit cards, putting consumers’ data and credit access at risk.  

CUNA President/CEO Jim Nussle outlined concerns about the Credit Card Competition Act (CCCA) of 2023 led by Sen. Richard Durbin, D-Ill. 

“This ‘big box bill’ is just another way for large merchants to squeeze more out of the American consumers’ pockets by disrupting payment systems that consumers want in place, leaving them vulnerable,” said Nussle. 

Survey data shows that consumers overwhelmingly value security and credit card availability.  

“It is reprehensible that at a time when hard-working Americans are already feeling the financial pinch from inflation, big box bullies are pushing for financial breaks that would risk both the data security and access to credit for consumers and small business owners. This bill would allow these large merchants to use the cheapest credit card processing option, with no requirement to keep consumers’ data safe or return savings back to them.”  

“Interchange is the cost of doing business,” points out Nussle. “Merchants like Target and Walmart reap the benefits of credit card usage with immediate payments, protection from fraud, and typically larger purchases by consumers – but don’t want to pay the cost of accepting credit cards.”   

“The debit card interchange limitations that Senator Durbin slipped into the Dodd-Frank Act in 2010 did not result in any consumer cost savings. Since that time, credit card fraud rates have doubled. Why would we expect a different result from this legislation? We are going to see retailers lining their pockets with money without reducing prices, leaving consumers and small business owners in the lurch.” 

“We pushed back to stop this legislation last session, and we will do it again. CUNA, state credit union Leagues, and credit unions oppose these changes to the current interchange system, and vow to protect the more than 135 million credit union members across the country who don’t deserve to suffer from a government mandate that will shift costs and risks to them.”    

CUNA and other organizations within the financial services sector issued a joint statement outlining concerns earlier Wednesday.