WASHINGTON—The proposed changes to credit card interchange in the Credit Card Competition Act are a big concern for credit unions in how it would impact the 137 million members they serve nationwide, CUNA wrote to all members of Congress, referring to the bill as the “Big Box” interchange bill.
“When it comes to interchange, we know the sponsors and retailers are pushing hard to move this legislation forward and looking to add the Big Box Bill bailout interchange language to other legislation. We wholeheartedly oppose those efforts, and some of the claims that are circulating bring serious concerns,” wrote CUNA Deputy Chief Advocacy Officer for Federal Government Affairs Jason Stverak, calling on members in both chambers to reject the bill as a standalone, and attached to other legislation.
Additional Points Raised
The message also notes:
- Despite claims otherwise, the rate of interchange is not increasing. According to data from Verisk Financial Research and the Nilson Report, it has remained consistent for more than six years. The amount of card purchases made is increasing, and data shows that people spend more when they use a credit card
- Credit card interchange costs are 1% of small business expenses despite retailer claims that it’s among the top three operational costs
“Frankly, interchange is the cost of doing business with credit cards – and a much smaller price to pay when compared to the profits generated by credit cards for the businesses that choose to accept them,” Stverak added.
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