WASHINGTON — The Kansas Bankers Association and the Electronic Payments Coalition said they are prepared to spend up to $1 million on advertising critical of Sen. Roger Marshall, R-KS) for his support of legislation that would cap certain credit-card interest rates and change how card transactions are routed.
The latter proposal is included in the Credit Card Competition Act, on which Marshall is a co-sponsor along with Sen. Richard Durbin (D-IL). That legislation is strongly opposed by credit unions and financial services organizations, and just as strongly supported by retailers and merchants.
The KBA and the EPC say the effort is intended to educate consumers and policymakers about what they describe as the economic risks of government-imposed price controls and new interchange mandates tied to the Credit Card Competition Act.
Earlier Advertising Campaigns
The Electronic Payments Coalition — which represents banks, credit unions, card networks and other payments stakeholders — has previously launched national advertising and advocacy campaigns highlighting opposition from community financial institutions and warning that the legislation could harm smaller lenders.
Industry Pushback Intensifies
Financial services trade groups broadly argue the proposals would introduce government mandates into credit-card pricing and routing, reducing consumer choice and increasing fraud and compliance risks.
The Electronic Payments Coalition, along with the credit union trade groups, officials have framed the Durbin-Marshall approach as benefiting major merchants, the so-called “Big Box retailers,” at the expense of financial institutions and consumers, warning of broader economic effects if enacted.
What Supporters Say
As the CU Daily has been reporting, retail groups and bill advocates counter that the legislation is designed to inject competition into a market they say is dominated by Visa and Mastercard, arguing it would provide relief to businesses facing non-negotiable transaction fees.
Marshall has promoted the measure as a way to challenge network dominance and address so-called “hidden” swipe fees charged on card transactions.
