America’s Credit Unions has announced its opposition to the Durbin-Marshall Credit Card Competition Act. The announcement was made in a letter addressed to the Senate Judiciary Committee.
According to Payments Dive, the Durbin-Marshall Credit Card Competition Act would require banks with assets exceeding $100 billion to enable multiple credit card payment networks per card. The bill aims to increase competition but has faced criticism from financial institutions, which argue it could raise fraud risks and negatively impact consumer benefits. The legislation advanced through a Senate committee in July 2023.
The Bank Policy Institute reports that the Durbin-Marshall bill would increase the cost of providing credit card services and reduce rewards and benefits for consumers. The Institute notes that similar regulations on debit cards following the Durbin Amendment led to decreased revenue at community banks and higher fees for consumers, particularly those with low balances.
A study cited by Business Wire found that the Durbin-Marshall bill could cost Florida over $12 billion in economic activity and more than 8,700 jobs by 2025. The research highlights the bill’s potential to reduce access to credit and rewards for small businesses and consumers, especially in economically vulnerable regions.
According to America’s Credit Unions, the organization represents America’s not-for-profit, member-owned credit unions and advocates for their ability to serve more than 137 million members nationwide. Formed through the merger of Credit Union National Association (CUNA) and National Association of Federally-Insured Credit Unions (NAFCU), it supports policies that promote financial well-being and economic opportunity for all. The organization provides advocacy, compliance resources, and educational support for the credit union industry.
