WASHINGTON–The two opposing sides in the fight over the Credit Card Competition Act–with banks and credit unions on one side and merchants and retailers on the other–are each putting on a full court press in Washington over the legislation that has been added as an amendment to the GENIUS Act, which continues to move forward.
With merchants calling passage of the legislation “crucial,” credit unions and aligned organizations are saying it is a “poison pill.”
Credit unions have also joined with other groups in opposing a separate amendment that would impose a credit card interest cap.
The CCCA has been added as an amendment to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which seeks to regulate stablecoins–which are pegged to a currency, in this case the U.S. dollar–and has the backing of the crypto industry and the Trump Administration.
Proponents of the Credit Card Competition Act—merchants and retailers–say it will increase competition in the credit card industry by requiring large banks (with assets over $100 billion) to allow credit card transactions to be processed on at least two unaffiliated networks, one of which must not be Visa or Mastercard. While only one credit union (Navy Federal) is above that asset size threshold, critics say it will for all practical purposes apply to all card issuers and will drive down interchange income without requiring retailers to do anything about risks from fraud.
A ‘Poison Pill’
America’s Credit Unions signed onto a joint letter Wednesday (this is in addition to its own letter of strong opposition that was sent earlier) in which the signatories cite “numerous negative consequences to the bill, and the research supporting it.”
“The Durbin-Marshall bill, a poison pill amendment that has not been properly considered through the regular legislative process, would harm consumers, small businesses, and financial institutions alike by reducing choice, increasing costs and fraud risks, and create economic challenges for small financial institutions,” the letter states.
The letter points to a recent study showing that the bill would reduce access to credit, particularly in smaller communities and low-income households.
‘Seen This Movie Before’
“We’ve seen this movie before,” Jason Stverak, chief advocacy officer with the DCUC said in a statement. “The Durbin Amendment on debit cards promised savings for consumers and instead handed windfalls to retailers with no requirement to pass along a single penny in savings. The Marshall-Durbin bill would only make things worse by extending the same failed logic to credit cards.
“DCUC has made our position clear in multiple letters to Congress, including a detailed warning to Senate leadership that the Durbin-Marshall bill would disproportionately harm our nation’s military and veteran families who rely on safe, accessible, and trusted credit union services,” Stverak continued. “As we’ve documented, the legislation could disrupt how military families access emergency credit during relocations, separations, and deployments—all while threatening the financial stability of defense credit unions serving on the front lines of our nation’s readiness.”
Opposition to Card Interest Rate Cap
In addition, America’s Credit Unions said it also joined financial services trade organizations in a letter opposing an amendment from Sen. Josh Hawley (R-MO) that would cap credit card interest rates at 10%.
In the letter the groups argue that any government price controls, including annual percentage rate caps, hurt consumers.
“This amendment would eliminate access to credit cards for millions of consumers and drive them to sources of credit which are far more costly and less regulated,” the letter reads. “Many consumers who currently rely on credit cards would be forced to turn elsewhere for short-term financing needs, including pawn shops, auto title lenders, or worse–such as loan sharks, unregulated online lenders, and the black market.”
The Senate advanced the GENIUS Act through several procedural votes on Wednesday, with America’s Credit Unions calling the amendments process “ongoing.”
‘We’ve Seen the Data’
“Artificial interest rate caps don’t solve the problem of affordability—they just restrict access and force people into worse options. We’ve seen the data: Credit cards are often a lifeline for military families facing emergency expenses or waiting for reimbursements tied to PCS moves or travel orders,” Jason Stverak, chief advocacy officer with the DCUC said in a statement. “DCUC supports the original GENIUS Act’s purpose of creating a regulatory framework for stablecoins. However, the inclusion of either of these amendments would transform a targeted financial innovation bill into a vehicle for reckless, harmful policies that ignore the needs of working-class Americans and our military.”
‘Crucial Time’
Meanwhile, on the other side of the issue, the National Association of Convenience Stores (NACS) headlined an alert to its membership, “The Next 48 Hours Are Crucial to Move Credit Card Swipe Fee Reform Forward.”
NACS is urging its members and any business that accepts credit cards to contact their respective senators and urge them to support the Marshall-Durbin Amendment, which was filed on Tuesday by U.S. Sens. Roger Marshall (R-KS) and Richard Durbin (D-IL), lead sponsors of the Credit Card Competition Act (CCCA), as the CU Daily reported here.
“A Senate vote on the Amendment could come as early as Friday, May 23, and this 20-plus-year battle for credit card reform could be decided by which industry best showcases its grassroots voice on the issue,” NACS SVP-Government Relations Lyle Beckwith said in a statement. “Our industry engagement could be the difference in whether we finally get relief from outrageous swipe fees.”
The organization said the Marshall-Durbin Amendment has the support of almost 2,000 companies and nearly 300 trade associations.
‘Record Swipe Fees’
It added that credit and debit card swipe fees—which have increased 70% since 2020 and reached a record $187.2 billion in 2024—are “convenience retailers’ second highest operating expense after wages and benefits. The fees are far too high to absorb, especially for smaller, family-run businesses, and cost the average U.S. family nearly $1,200 a year.”
Bill Advances
The Senate advanced the GENIUS Act through several procedural votes on Wednesday, with America’s Credit Unions calling the amendments process “ongoing.”