EPC Highlights Credit Unions, Community Banks’ Opposition to Durbin-Marshall Credit Card Bill

Coalition represents nearly 10,000 financial institutions in all 50 states, serving 140+ million Americans

Date: January 8, 2024
Media Contact:
Nick Simpson
Nick@electronicpaymentscoalition.org

WASHINGTON, DC — This month, the Electronic Payments Coalition (EPC) is launching new campaign ads across the country in partnership with credit unions and community banks to highlight the united opposition of Main Street institutions against the Durbin-Marshall Credit Card Bill.

EPC’s campaign will include digital display and video ads educating lawmakers about the negative impact proposed credit card routing mandates would have on smaller financial institutions. The campaign will also call out the failure of the legislation’s so-called “carve-out” for community banks and credit unions.

American Bankers Association President and CEO Rob Nichols said, “This misguided legislation is a major threat to the thousands of community banks we represent and the customers and communities they serve. Without the revenue they receive for their investment in the payments system, many community banks would be forced to reconsider whether they can even afford to offer credit cards to their customers at all. This is a regressive bill that takes from consumers, community financial institutions and small businesses and gives to the largest and most profitable retailers and grocery chains, all of which benefit tremendously from the safety, efficiency and convenience of today’s modern payments system. Congress should reject this bad idea.”

America’s Credit Unions President and CEO Jim Nussle said, “With 140 million American consumers relying on credit unions to provide safe and affordable products to maintain a healthy financial lifestyle, the big box bailout that Senators Durbin and Marshall are pushing will throw a wrench in services our industry provides in underserved and rural communities. Credit unions use the small percentage of interchange generated by a purchase to improve options for consumers – data security, more fraud protection, and affordable, reliable access to needed credit. They say history repeats itself, and this latest push on Durbin 2.0 will have detrimental effects on Main Street small businesses and consumer wallets that are already feeling the stretch.”

Independent Community Bankers of America President and CEO Rebeca Romero Rainey said, “ICBA and the nation’s community banks strongly oppose controversial legislation to create new credit card routing mandates, which would reduce access to credit card services in local communities, weaken cybersecurity protections, and end popular credit card rewards programs solely to benefit large retailers like Amazon and Walmart. This government intervention — which ICBA polling shows consumers oppose — would strip consumers of their right to choose their preferred credit card network while requiring community banks to subsidize the costly changes it would impose on the payments system. We call on every member of Congress to join us in opposing this anti-consumer and anti-community bank legislation.”

Kansas Bankers Association President & CEO Doug Wareham said, “The credit card routing mandate proposed by Senators Durbin and Marshall is an attack on banks’ freedom to engage with the financial service partners who bring the greatest value, widest array of benefits and strongest financial security to their credit card customers. This proposal will impose enormous costs on Kansas banks, including community banks, and it will jeopardize the ability of those same banks to offer loyalty and reward cards Kansans benefit from.”

Local credit unions and community banks play an essential role in serving small businesses and hardworking families across the country. If the Durbin-Marshall credit card bill were enacted, it would force an overhaul of the payments landscape at a significant systemic cost – a cost ultimately borne by consumers and the local financial institutions that serve them. The legislation solely benefits the largest corporate mega-stores like Walmart and Target and fails to protect vital community-based financial institutions.

In total, this coalition serves more than 140 million Americans and represents nearly 4,700 community bank charters, across nearly 80,000 branches as well as more than 4,800 credit union charters with more than 21,000 headquarters, branches, and other locations in all 50 states. The full list of banking organizations that have signed letters to Congress opposing the Durbin-Marshall Credit Card Bill is available here.