WASHINGTON–Just hours before it actually happened, credit unions here were cautioned that the CU-opposed Credit Card Competition Act could be attached to just about any legislation Congress is looking to move this year. And then it was.
As the CU Daily reported here, Sen. Roger Marshall (R-KS) has filed the Credit Card Competition Act as a non-germane amendment to the Housing for the 21st Century Act, which seeks to change card government-mandated routing rules and lower card interchange fees.
Shortly before word of the amendment reached the Marriott Marquis hotel where the Defense Credit Union Council was hosting its Defense Matters meeting, Nick Simpson, managing director, communications and public affairs with the Electronic Payments Coalition, of which credit unions are a part, had cautioned that the bill could resurface at any time.
The ‘Big Myth’
“The big myth is this is going to save consumers money,” said Simpson. “We all know the big box stores are just got to keep the money and not pass along (savings) to the consumer.”
Simpson said he’s tired of hearing people warn the CCCA could have “unintended consequences,” noting there is a “ton of research and studies” that have examined what has happened in the market since the Durbin Amendment affected debit cards.
“We know what’s going to happen,” he told the meeting.
Simpson said Congress wants to hear from the “real people who are going to be affected by these mandates. There are going to be consequences for small institutions. Congress needs to know about the side effects. Our request from EPC is that you emphasize your mission, and that you serve those who serve the country. Every policy change should be through that lens. Share the data, talk about your process, the day in, day out consequences.”
Two Reminders
Simpson reminded many policy makers don’t know how credit cards work.
“It has nothing to do with small business, competition and consumers. Competition works best when markets can compete and consumers can decide,” he said.
He also reminded credit unions that the fight over interchange isn’t limited to Congress and that merchants have introduced more than 40 similar bills in 23 states to date.
