WASHINGTON— The Defense Credit Union Council (DCUC) is urging Puerto Rico lawmakers to reject proposed legislation that would alter interchange fee calculations, warning the measure could disrupt the payments system and harm consumers, small businesses and financial institutions.
In a May 1 letter to leaders of the Puerto Rico House, DCUC said H1216—which would exclude taxes and gratuities from interchange fees on electronic transactions—would introduce “significant operational challenges” and ultimately shift costs rather than reduce them.
DCUC President and CEO Anthony Hernandez said the proposal carries broader implications for military families served by credit unions.
“For military families, financial stability is not a side issue, it is part of mission readiness,” Hernandez said, adding that policies that weaken credit unions or create uncertainty in payments systems can affect household stability and resilience.
‘Transaction Uncertainty’
In its correspondence, DCUC Chief Advocacy Officer Jason Stverak outlined several concerns, including the potential for market distortions that disproportionately affect credit unions, increased compliance burdens and fragmentation of the payments system.
The organization said the global electronic payments infrastructure is not designed to accommodate jurisdiction-specific carveouts, warning such changes could lead to transaction uncertainty, increased declined transactions and restricted card usage in Puerto Rico.
DCUC also argued the proposal would likely redistribute costs rather than eliminate them, potentially resulting in higher fees, reduced services or diminished access to credit—particularly for underserved communities.
Additionally, the group said large retailers could benefit disproportionately from the changes, while small businesses and consumers face added complexity at the point of sale.
‘Critical Role’
DCUC emphasized that credit unions play a critical role in supporting servicemembers, veterans and their families, including those in Puerto Rico, by providing financial services during deployments and relocations.
“Credit unions serving military communities are mission-driven institutions focused on financial readiness and inclusion,” Stverak said. “We urge policymakers to pursue solutions that protect consumers without undermining the secure, efficient payments infrastructure families and businesses depend on every day.”
DCUC said it remains willing to work with lawmakers on alternative approaches that protect consumers while preserving a stable and efficient payments system.
