WASHINGTON--America’s Credit Unions and all state credit union leagues and associations are urging in lawmakers to reject the Credit Card Competition Act, warning that the proposal would harm consumers, weaken data security, and reduce access to affordable credit.
“Credit unions are the original consumer protectors. They strive to serve their consumer members and improve their financial well-being with affordability at the forefront. Unfortunately, studies show that mandates, like those in the Credit Card Competition Act, don’t lead to lower prices at checkout, and previous asset size carveouts show that this will affect credit unions, and their consumer members, at every size. At a time when policies and solutions are needed to bolster our nation’s financial resiliency and increase affordability, studies show that these mandates would slow down the U.S. economy, costing $227 billion in lost economic activity and approximately 156,000 lost jobs,” the letter reads.
In a letter sent to Congress, the organizations argue that the bill would:
- Extend failed debit card routing mandates to credit cards, effectively imposing backdoor price controls that primarily benefit large retailers while shifting costs onto consumers and community financial institutions. Past experience with the Durbin Amendment shows that such mandates do not lower prices at checkout, but instead lead to higher fraud, reduced rewards, and fewer low-cost banking options
- Increase fraud risks by allowing merchants to route transactions over less secure networks, while also undermining the interchange revenue that helps fund card security and fraud prevention
- Reduce access to credit. Interchange helps credit unions provide access to credit and low-cost banking products, especially in underserved, rural, and low-income communities. Credit cards essentially provide consumers with a loan at the point of sale to make a purchase they may not otherwise be able to make. Without interchange, many institutions could be forced to tighten credit standards or stop issuing credit cards altogether.
The groups urged Congress to focus on real solutions, such as those provided by credit unions, that expand access to safe, affordable credit rather than policies that repeat past mistakes.
To read the full letter, click here for the Senate version: 1-16-26-americas-credit-unions-aacul-cu-leagues-senate-ccca-opposition-letter.pdf. The House version is here: 1-16-26-americas-credit-unions-aacul-cu-leagues-house-ccca-opposition-letter.pdf