WASHINGTON–Credit unions and other financial regulators were privately happy to hear Sen. Richard Durbin (D-IL) said he will not seek re-election, but they will be less-than-pleased to hear the senator plans a major push for his credit card legislation before he leaves Washington.

Durbin, author of the Durbin Amendment Reform and Consumer Protection Act of more than a decade ago, which caps debit interchange for institutions of more than $10 billion in assets, said he will continue to push for the Credit Card Competition Act, which would require the largest credit card issuers to ensure credit card processing systems always make a network other than Visa and Mastercard available to retailers, restaurants and other merchants. 

Durbin says the requirement will spur competition and lower costs for consumers; financial institutions disagree, including America’s Credit Unions.

Durbin has introduced the bill in the past two congressional sessions, along with co-sponsor Sen. Roger Marshall (R-KS), but has yet to introduce it in the current Congress. 

Looking for a Ride

The idea behind the legislation is that it would create an opening for more competitors to challenge the duopoly, ultimately cutting card processing costs. 

Doug Kantor, who serves as general counsel for the National Association of Convenience stores, which is a major supporter of the bill, told Payments Dive Durbin is waiting for the right time, including attaching it to a larger bill that can carry it.

“There is a broad and growing recognition that the credit card companies don’t do business the right way, and this bill may be one piece of addressing that,” Kantor told Banking Dive.

Not Going Anywhere

On the House side, Arkansas Republican French Hill, who is chairman of the House Financial Services Committee, told Banking Dive he does not see the bill going anywhere because Congress shouldn’t be in the position of refereeing between retailers and banks.