Concerns Over Credit Card Competition Act Expansion
Eleven banking and credit union organizations have urged lawmakers to dismiss any efforts to broaden the Credit Card Competition Act (CCCA) and the Durbin Amendment.
In a statement released on January 22, the groups emphasized that “Payment card systems are convenient, secure, and essential to the American economy.” They warned that the Durbin-Marshall bill threatens consumer protections, incentive programs, and access to credit, ultimately serving the interests of a few large retailers.
The letter was supported by various organizations, including the American Bankers Association and the American Credit Union Association, among others.
Reports from earlier this year indicated that the CCCA could allow card payments to be routed through at least one competing network, potentially impacting major entities like Mastercard and Visa.
Proponents of the CCCA argue that this change could lead to lower swipe fees. Retail groups, including the Seller Payments Coalition, are backing the bill.
Former President Donald Trump endorsed the legislation during a Senate speech earlier this month. Senators Roger Marshall and Dick Durbin reintroduced it, while parallel proposals surfaced in the House of Representatives from Zoe Lofgren and Lance Gooden.
In a post on Truth Social, Trump claimed the bill would “stop out-of-control swipe fee rip-offs.”
Opponents, however, contend that the majority of the financial benefits would be directed toward large retailers, leaving small businesses potentially losing up to $1 billion in compensation and facing reduced access to credit.
Furthermore, they argued that the bill’s “backdoor pricing controls on credit routing” could make it challenging for smaller community banks and credit unions to offer affordable loans to families and local businesses.
They expressed concern that low-income consumers and individuals with poor credit would find it even harder to access credit cards. Their letter pointed out that the payments landscape is highly competitive, offering numerous options for businesses and consumers alike.
Moreover, they noted a lack of evidence indicating significant concentration within the credit card market. With over 4,000 issuers, even the largest sectors fall well below the Department of Justice’s concentration thresholds, suggesting a competitive environment compared to other industries.
