Financial Services Coalition Sends Joint Letter to Congressional Leaders Opposing Harmful Credit Card Routing Legislation

Date: June 9, 2023
Media Contact:
Steven D. Smith
ssmith@electronicpaymentscoalition.org

WASHINGTON, DC – Today, ten trade associations representing the financial services industry including the American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, Electronic Payments Coalition, Independent Community Bankers of America, Mid-Sized Bank Coalition of America, National Association of Federally-Insured Credit Unions, and National Bankers Association sent a joint letter to Congressional leaders opposing legislation (S.1838) by Senator Roger Marshall (R-KS) and Senator Dick Durbin (D-IL) creating new credit card routing mandates that would eliminate funding for popular credit cards rewards programs, weaken cybersecurity protections, and reduce access to credit for those who need it the most.

The letter highlights the detrimental harm that the bill’s credit routing mandates would have on consumers, community banks, and credit unions: 

“Far from increasing competition in the credit card marketplace, this legislation will hurt consumers and benefit big-box retailers by reducing the number of credit card issuers competing for consumers’ business, removing a consumer’s choice of preferred card network, wringing out the competitive differences among card products, limiting popular credit card rewards programs, and putting the nation’s private-sector payments system under the micromanagement of the Federal Reserve Board.

“Contrary to its sponsors’ misguided claims, the adverse effects of this bill are clear: fewer options for consumers, greater threats to consumer data and privacy, weakened community banks and credit unions, and the disappearance of card rewards programs that families of all income levels use to stretch their budgets.”

The full letter can be found HERE.