WASHINGTON—Saying credit card interchange price controls, such as those included in the Credit Card Competition Act currently before Congress, will bring no benefits to consumers, a panel at NAFCU’s Congressional Caucus outlined their views on the “detrimental impacts” they said the legislation will have.
Credit unions are staunchly opposed to the legislation, while the nation’s retailers and merchants strongly favor it.
The panel, moderated by NAFCU Vice President of Legislative Affairs Brad Thaler, included Lake Trust Credit Union Government Affairs Manager Rebecca O’Connell, Mastercard Senior Vice President and Head of U.S. Federal Affairs Amanda Slater, and Visa Senior Vice President and Head of U.S. Government Engagement Pace Bradshaw.
‘No Benefits to Consumers’
Stating proponents of the legislation “try to argue” the potential benefits to the American people, Bradshaw told the meeting, “All of the studies on the first Durbin Amendment have highlighted there is no benefit to consumers.”
The group also expressed concerns around security for both for financial institutions and consumers. Credit unions and financial institutions are arguing a reduction in fee income and a routing of transactions over other networks will lead to far greater risks.
As credit union attendees prepared to meet with lawmakers over the course of the meeting and to express opposition to the Credit Card Competition Act, panelists encouraged them to tell the story of their members to ensure they know this isn’t “just a Washington, D.C., issue, it effects their state and their constituents.”
Senator: Tax Status is Safe
Following the panel, Senate Finance Committee Chairman Ron Wyden (D-OR) told the meeting, “As long as I am the chairman of the Senate Finance Committee, anybody who wants to mess with your federal tax exemption is going to have to run over me.”
Wyden also offered support for lifting the member business lending cap to promote lending in underserved communities, according to NAFCU.
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