Gerard Scimeca, Chairman and Co-founder of Consumer Action for a Strong Economy (CASE), expressed concerns over Senator Dick Durbin’s proposed credit card legislation. He said that the proposal would result in the loss of consumer rewards and increased financial burdens.
“Durbin is primed to rob consumers of credit card benefits just as he did with debit cards,” said Scimeca. “The Durbin-Marshall bill may be aimed at the two major credit card companies. Durbin’s ‘pro-consumer’ legislation wound up costing consumers billions. Merchants won’t admit it, but they pocketed the savings.”
According to congress.gov, the Credit Card Competition Act of 2022 (S.4674) was introduced by Senators Dick Durbin and Roger Marshall. The bill aims to require banks with assets exceeding $100 billion to enable transaction processing on at least two unaffiliated networks. This legislation targets exclusive arrangements between major banks and card networks like Visa and Mastercard, intending to foster competition and reduce costs for merchants. The bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs.
The Guardian reported that the Durbin Amendment did not deliver the promised savings to consumers but instead led to unintended costs. While merchant fees were capped, banks eliminated rewards programs and introduced new fees to recoup lost revenue, disproportionately affecting lower-income Americans. Critics argue that the legislation benefitted large retailers at the expense of consumers.
Florida Politics reported that the Associated Industries of Florida (AIF) strongly opposes the Credit Card Competition Act, citing potential harm to Florida consumers and small businesses. AIF said that similar past regulations resulted in fewer financial benefits, increased cardholder fees, and diminished innovation in payment services. They warned that imposing network mandates would “jeopardize access to credit and increase costs for hardworking Floridians.”
According to CASE’s website, Scimeca is a legal expert, media analyst, and political strategist with experience in managing successful campaigns, producing media content, and writing on free-market issues. A frequent commentator in the media, he earned his degrees from Notre Dame and the Catholic University Columbus School of Law.
