WASHINGTON–Citing the potential for renewed action in the lame duck session of Congress on the credit union-opposed Credit Card Competition Act, and with headlines that include “The $235-Billion Betrayal,” the Electronic Payments Coalition–of which America’s Credit Unions is a member–has launched a national campaign at “MegastoreGreed.com” that suggests the legislation will be hugely profitable to retailers and harmful to consumers.
The campaign seeks to challenge retailers’ claims that interchange mandates benefit consumers and warns of the potential impact on community financial institutions such as credit unions.
The CCCA would require large credit card-issuing financial institutions (with assets over $100 billion) to enable at least two unaffiliated payment networks on their credit cards. While that asset threshold applies to just one credit union, the CU trade groups have argued that by default it will affect all credit unions.
“America’s Credit Unions has long opposed the Credit Card Competition Act because it would disrupt a secure and competitive credit card system without making life more affordable,” the trade group said.
Durbin Amendment is Cited
The new campaign points to the Durbin Amendment–which applies to debit cards–as evidence that interchange mandates enrich large retailers without delivering the promised savings to consumers. Sens. Richard Durbin (D-IL) and Roger Marshall (R-KS), the two primary sponsors of the CCCA, are both leaving Congress after this session, prompting fears they will seek to leave a legacy and make a final push on the legislation, which has not gained traction to date in Congress.
The EPC further argues that despite billions of dollars in reduced debit card costs for retailers since Durbin’s enactment, they largely failed to lower prices, instead retaining the savings while consumers continued to face higher costs.
“EPC says that history should serve as a cautionary tale as Congress considers new credit card routing mandates,” America’s Credit Unions said.
The campaign also suggests expanded interchange regulations hurt community financial institutions, and potentially reduce resources that credit unions use to protect members from fraud, invest in payment security, and provide competitive products and services.
EPC is directing consumers to MegastoreGreed.com, where they can watch the new “Mr. Megastore” commercial and learn how the Durbin Amendment affected consumers, small businesses, and community financial institutions.
Waterfall of Cash
The animated website, which includes an ongoing waterfall of U.S. currency, includes pages with the headlines:
- Corporate Megastores get $235B Richer?
- Customers and Small Businesses Got Higher Prices
- The $235 Billion Betrayal
- What They Said: Big Boxes, Big Lies
- What Really Happened Corporate Megastores Pocketed Billions. You Got Nothing
- How Corporate Megastores Cashed In: The Evidence
- Tell Congress: Stop Corporate Megastore Greed
The site includes to several pieces of “research” to support the assertions made, as well as a petition that can be signed.
