Editor's Note: Ths story has been updated since it was originally reported to clarify that the proposed legisation has been offered as an amendment and has not yet been added.
WASHINGTON–The credit union-opposed Credit Card Competition Act has been offered in the Senate as an amendment to the must-pass 2024 Financial Services and General Government appropriations bill.
It must still be voted on before it is included.
The amendment is being offered by Sen. Roger Marshall (R-KS) on behalf of himself and Sen. Richard Durbin (D-IL), who are the bill’s cosponsors. Durbin had promised he would take action on the bill in this Congress after it failed to make it out of the prior Congress.
The Credit Card Competition Act, often referred to as the “Big Box Bailout Bill” by America’s Credit Unions would require that cards from financial institutions with $100 billion or more in assets be enabled to be processed over at least two unaffiliated networks – Visa or Mastercard plus a competitor like NYCE, Star or Shazam, or even American Express or Discover.
The financial institution would decide which networks to enable, but merchants would then choose which to use on individual transactions, meaning networks would have to compete over fees, security and service, according to proponents of the bill. Supporters of the Credit Card Competition Act have said it would save merchants and their customers an estimated $11 billion a year.
Strong Divide
The nation’s merchants and retailers have been robustly advocating for passage of the bill, which is just as strongly opposed by financial institutions. The latter claim that in spite of the CCCA’s intent, it will raise costs for consumers and could mean an end to popular rewards programs.
There are two differences in the current bill from the bill in the prior Congress, including:
- States that routing cannot be limited to two networks if any of the networks are included on the list of “designated national security risks” under subparagraph D.
- Requires the list of “designated national security risks” to be updated every two years.
Will Kill the ‘Turkey’
"We always knew two things,” said John McKechnie, an advocate for credit unions on Capitol Hill. “One, senators Durbin and Marshall were going to be persistent in trying to attach this turkey to everything that moves. Two, there are enough senators who see this bill for what it is, and won't allow something so controversial to be attached to a must pass bill."