Today, the Defense Credit Union Council, DCUC, sent a letter to Senate Judiciary Committee Chairman Dick Durbin (D-IL) and Ranking Member Lindsey Graham (R-SC), voicing strong opposition to legislative proposals targeting credit card interchange rates. DCUC highlights significant risks these measures pose to military service members, veterans, and their families as the committee prepares for the hearing titled, “America’s Big Ticket: Examining the Impact of the Visa-Mastercard Duopoly on Small Businesses and Consumers.”

Credit card interchange fees, which fund essential security, fraud protection, and efficient transaction processes, are vital to the financial operations of defense credit unions. In the letter, DCUC stresses that these fees support low-interest loans, financial counseling, and other critical services tailored specifically for military and veteran members. Reducing interchange fees could threaten the ability of defense credit unions to provide these resources, which are crucial for the financial readiness that directly affects the overall mission readiness for U.S. service members.

Jason Stverak, DCUC’s Chief Advocacy Officer, voiced that similar legislation, such as the Durbin Amendment of 2010, led to adverse consequences for smaller financial institutions and consumers alike, with studies showing that 76% of merchants did not pass savings on to consumers. DCUC cautioned that applying comparable regulations to credit card transactions would likely yield similar negative impacts.

“Defense credit unions have consistently championed the financial well-being of military and veteran families,” says Stverak. “These communities rely on the support, stability, and security defense credit unions offer. As we’ve seen in the past, interchange rate caps can limit resources, raise costs, and impose new financial challenges—especially on military families who already face unique burdens due to frequent relocations, deployments, and the transition to civilian life.”

DCUC’s letter calls on the Senate Judiciary Committee to oppose any regulatory measures that could undermine the financial stability of military and veteran families as well as the readiness of America’s armed forces.

DCUC remains committed to protecting the interests of military families on behalf of its member defense credit unions and is prepared to provide additional insights and participate in further discussions on this critical issue.