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New Study Shows Durbin-Marshall Credit Card Bill Would Decimate Travel Industry, Credit Unions, Community Banks & Consumers

| Electronic Payments Coalition

The International Center for Law & Economics Unveils New Study on Durbin-Marshall’s Impact on Co-Branded Credit Cards

Date: December 7, 2023
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WASHINGTON DC — The International Center for Law & Economics (ICLE) has released a comprehensive study examining the potential repercussions of the Durbin-Marshall interchange bill on co-branded credit cards, their issuers, and consumers.

The proposed bill threatens irreparable harm across multiple industries that would result in inevitable price hikes, diminishing funds, and even bankruptcy among vital retailers and airlines that Americans heavily depend on for their services.

Several high-level takeaways from the study are below:

  • The report found no outcome in which Durbin-Marshall would be “good for competition, American consumers, or the U.S. economy as a whole” and that “economic growth would be adversely affected.”
  • If enacted, the study projects that Durbin-Marshall could trigger a decline in innovation investment by issuers and networks, decreasing security, convenience, and other aspects of tokenized transactions.
  • Additionally, the bill could inadvertently curtail competition among issuers and result in increased interest rates and diminished credit card rewards, particularly affecting industries heavily reliant on co-branded cards. This would likely lead to heightened interest rates following reduced interchange.

EPC Executive Chairman Richard Hunt commented on the new ICLE study saying, “This new research serves as yet another confirmation that the Durbin-Marshall interchange bill will be a disaster for credit unions, community banks, the travel industry, and hardworking American families. The findings underscore the need to scrap this bill that only benefits mega-stores like Walmart and Target while jeopardizing the safety, security and convenience of America’s electronic payments system.” The ICLE study, titled “The Credit Card Competition Act’s Potential Effects on Airline Co-Branded Cards, Airlines, and Consumers,” can be accessed on the ICLE website: HERE.

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