WASHINGTON, D.C. — Today, Jeff Tassey, board chairman of the Electronic Payments Coalition (EPC), released the following statement opposing legislation introduced by Senator Dick Durbin (D-IL) and Senator Roger Marshall (R-KS) creating new credit card routing mandates that would allow big-box retailers to rake in billions in extra revenue at the expense of consumers, small businesses, and small banks:
“Once again, special interest groups representing big-box retailers have convinced their allies in Congress to introduce another big-government handout that will make them billions of dollars. The proposed routing mandates on credit cards will shift billions in consumer spending to less secure, less innovative, and higher-risk transactions that would weaken America’s payment system and put consumers in a vulnerable position. The proposed legislation will lead to even more private consumer information being made available to foreign networks in countries like China and Russia.
“Credit routing mandates are another way mega-retailers try to get rid of the free market in order to pad their bottom lines. Consumers choose their credit cards based on the value they place on payment security and rewards programs. The proposed legislation would remove choice from consumers, take away consumers’ card benefits, including rewards, and allow retailers to choose cheaper, less safe networks. Retailers cannot advance a single credible argument on how routing mandates would benefit consumers.
“Members of Congress should take a long hard look at the devastating results that debit routing mandates have already inflicted—on consumers, small businesses, and small financial institutions—and ask themselves, do big-box retailers really need another government handout?”
To learn more about the harmful effects of proposed credit routing mandates, click HERE or on the video below watch EPC’s explainer video that underscores the dangers of proposed credit routing mandates, which would reduce consumers’ credit card security and limit their ability to earn rewards.