CLEVELAND, Ohio–The president of the Ohio Credit Union League used an op-ed to respond to an opinion piece that had appeared on Cleveland.com that argued the Credit Card Competition Act would be beneficial to merchants and consumers alike, with the response arguing it is time to “set the record straight” on swipe fees.
Instead, wrote the OCUL’s Paul Mercer, the legislation “would harm consumers, reduce access to credit, and jeopardize small businesses by undermining the security and benefits funded by interchange fees.”
As the CU Daily has reported, there is currently an attempt in the Senate to attached the CCCA to the GENIUS Act. The CCCA would require FIs of more than $100 billion in assets to allow at least two payment networks on each credit card, including at least one alternative to the Visa/Mastercard duopoly. While only one CU exceeds that asset threshold, credit unions argue it will have the effect of lowering interchange fees for all issuers.
‘More Difficult’
“The Credit Card Competition Act would make it more difficult for Ohio credit unions to serve our members and Ohio small businesses. It would make credit card users less safe and decrease access to credit for Ohioans across the state,: wrote Mercer. “The use of credit cards has become almost ubiquitous in recent years, providing both security and accessibility that allows Ohioans to cover costs ranging from paying for groceries to covering unexpected medical bills. And credit cards often offer safety and fraud protections that other methods of payment cannot.
“Meanwhile, Ohio small businesses rely on the use of credit cards to maintain and grow their customer base, ensure financial transactions happen securely, and provide a convenient payment option for the Ohioans they serve,” Mercer continued. “To pay for that security and accessibility, credit card payments often include an interchange fee – sometimes referred to as a “swipe fee” – a small fee that allows customers to maintain access to fraud protection, secure transactions, and safety from would-be hackers.
‘Eliminate Access’
“The Credit Card Competition Act could eliminate access to these vital consumer protections and put Ohioans at risk of more data breaches by eliminating the funding source financial service providers and credit card companies use to pay for these important services,” Mercer stated.
