JUNEUA, Alaska—In an effort to stop an interchange bill in this state that could harm credit unions and consumers, the Defense Credit Union Council wrote to the Alaska Senate sharing strong opposition to the interchange provisions that have been added to SB 79.
“DCUC represents credit unions that proudly serve service members, veterans, and their families—including those stationed at Joint Base Elmendorf-Richardson and Fort Wainwright. We urge the Committee to remove this harmful provision and avoid enacting legislation that would compromise financial access, security, and military financial readiness in Alaska,” wrote DCUC Chief Advocacy Officer Jason Stverak.
DCUC stated the proposed interchange provision (from HB 171) threatens to impose serious harm on credit unions, small financial institutions, and the very consumers it claims to help—particularly those who serve our nation in uniform.
“This legislation would effectively mirror the failed federal Durbin Amendment experiment, the consequences of which have been well-documented: higher costs for consumers, the elimination of rewards programs, reduced access to affordable credit, and a profound disruption to low-cost debit card services that many Alaskans rely on,” Stverak said.
Interchange Regulation Harms Consumers—Not Big Banks
When similar federal legislation was enacted in 2010, it promised to lower costs for consumers, noted Stverak.
“Instead, nearly every reputable economic study has shown that retailers pocketed the savings while consumers lost access to benefits,” Stverak wrote. “A 2023 report found that Durbin’s price controls led to a $106 drop in average annual debit card benefits for consumers. Meanwhile, financial institutions faced a multibillion-dollar revenue reduction, cutting back on free checking and affordable accounts—especially in rural and underserved communities…
“Let us be clear: including the interchange regulation language in SB 79 would have a chilling effect on credit union operations in Alaska, limiting our ability to serve military bases and rural communities, and stripping funding from programs that uplift underserved populations,” continued Stverak. “This effort has the full backing of powerful national retailers who seek to shift their cost of doing business onto the shoulders of local credit union members and working families.”