WASHINGTON—“Major opposition” is being expressed by NAFCU to the recently introduced House version of the Credit Card Competition Act of 2022.
In its letter, NAFCU President and CEO Dan Berger stated the trade group’s position on why the House companion bill, led by Representatives Peter Welch (D-VT) and Lance Gooden (R-TX), poses the same risks to consumers and Main Street as its Senate counterpart.
In the letter, Berger detailed what NAFCU said are “negative impacts” of CCCA underscoring its “feeble attempts” at expanding the “failed Durbin Amendment, enacted in 2010 as part of the Dodd-Frank Act, which later proved to pass minimal, if any, savings to consumers.”
Berger further cited a Federal Reserve Bank of Richmond study that showed that after the Durbin Amendment was implemented. That study found “98.8% of merchants did not pass along savings realized from debit regulation to consumers and over 20% increased prices,” according to NAFCU.
‘Not About Competition’
“The Credit Card Competition Act of 2022 is not about competition,” wrote Berger. “It is about increasing the profits of big box retailers at the expense of consumers and financial institutions by creating government intervention in a free market and establishing a back-door price control on the credit card system.”
Berger also told Congress big box retailers would have full control over the payments network, taking away consumers’ autonomy over processing their credit card transactions.
“Retailers would have the ability to opt for cheap, untested networks, putting many consumers at risk,” NAFCU said. “Not to mention that higher credit card costs would be passed along to consumers and the financial institutions who serve them.”
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