Jason Stverak, Chief Advocacy Officer for the Defense Credit Union Council (DCUC), expressed concerns over the potential impact of the Credit Card Competition Act on reward programs. He said that such programs benefit millions of Americans, including military service members. This statement was made on X, a social media platform.
“It guts credit card rewards for millions of Americans, including service members who rely on those benefits,” said Stverak.
According to Congress.gov, the Credit Card Competition Act, also known as the “Durbin-Marshall Credit Card bill,” aims to lower interchange fees by mandating that networks other than Visa and Mastercard be available for transactions. Proponents believe this will foster competition among payment networks and reduce costs for merchants. However, critics argue it could decrease revenue for community banks and credit unions, thereby affecting access to credit.
The Nilson Report indicated that Visa and Mastercard credit cards in the U.S. generated $5.884 trillion in purchase volume in 2022. These two companies accounted for 578.75 million credit cards in circulation, with Visa holding a 52.7% market share and Mastercard 22.5%. They dominate U.S. credit card transactions both in terms of volume and card count.
A report by the James Madison Institute cautioned that the Credit Card Competition Act might lead to reduced or eliminated credit card rewards, such as cash back and travel benefits. The analysis further highlighted potential adverse effects on Florida’s economy, estimating a $1.9 billion reduction in consumer spending if rewards were significantly curtailed.
Stverak has served as Chief Advocacy Officer for DCUC since April 2024. Based in the Washington DC-Baltimore Area, he leads the organization’s government affairs and legislative advocacy efforts supporting credit unions serving U.S. military members and their families.
