Small business owners in New Mexico are pushing back on the narrative that the Credit Card Competition Act would benefit local businesses, telling congressional staff directly that the bill would help big-box retailers while putting them at a competitive disadvantage.
The Credit Union Association of New Mexico, working with the Small Business Payments Alliance, brought together credit union leaders, small business owners, and staff from U.S. Senators Martin Heinrich and Ben Ray Luján’s offices to discuss the Credit Card Competition Act and specifically, why they think it’s bad for New Mexico.
The Credit Card Competition Act would require certain credit cards to work on at least two unaffiliated networks for the largest banks, letting merchants choose which network routes the transaction. Credit union trade groups say it increases fraud risk, reduces consumer benefits and cuts off credit access for people who need it most.
“Credit unions are focused on protecting their members and ensuring they have access to safe, reliable financial services,” Credit Union Association of New Mexico President/CEO Melia D. Heimbuck said. “Interchange supports the security and infrastructure behind everyday transactions. Proposals like the Credit Card Competition Act risk increasing fraud, reducing consumer benefits, and limiting access to credit for the people who need it most.”
Five credit unions participated—First Financial, Nusenda, Rio Grande, Sunward and Zia—raising concerns that changes would weaken security protections and reduce fraud prevention resources.
Small business owners at the roundtable said the CCCA won’t help them either.
“The Credit Card Competition Act as currently written will help big-box stores, not New Mexico-based small businesses,” said Ashley Fathergill, owner of Upside Goods. “Local businesses and New Mexico consumers need a safe, fair system that minimizes costs while maximizing security.”
That should be significant to the senators because the CCCA has been positioned as a small business win. If small business owners are showing up to say otherwise, that undermines one of the bill’s key selling points.
Research cited during the roundtable indicates most potential savings would go to merchants with more than $500 million in annual sales, not your local hardware store or coffee shop.
The roundtable gave congressional staff a chance to hear from actual New Mexicans about how federal policy would impact local communities. Whether it changes minds remains to be seen, but credit unions are clearly not backing down on this fight.
The Credit Union Association of New Mexico says it will continue working with policymakers to support a payments system that prioritizes security, credit access and financial stability.