WASHINGTON, D.C. – Electronic Payments Coalition Executive Chairman Richard Hunt issued the following statement after President Donald Trump called for action on the Durbin-Marshall Credit Card Mandates, a proposal which has not been introduced this Congress, has not received Congressional scrutiny, and independent analysis shows would drain nearly $250 billion and approximately 160,000 jobs from the U.S. economy in just four years:
“The Durbin-Marshall mandates and the Sanders-Warren-Hawley government price controls would be a financial earthquake for American families and small businesses. These proposals are not reforms. This is a full-scale government takeover of every American’s wallet and will wreck the American economy.
“As many as 190 million Americans and small businesses – more than 80% of all cardholders – could immediately lose access to the safe, regulated credit they rely on to pay for essentials like groceries, gas and medicine; manage emergency expenses; build credit; and stay afloat in tough times. They would hand unprecedented power to the Federal Reserve, strip consumers and small businesses of choice, eliminate rewards and data security protections, and choke off credit when it’s needed most. The only winners might be the corporate mega-stores who pocketed the money when similar mandates were placed on Americans’ debit cards.
“We have seen this movie before. When President Carter imposed similar price controls in 1980, credit dried up, costs rose, and the economy slid into recession. Repeating that failed experiment today would be both reckless and devastating.”
Background on Durbin-Marshall Mandates:
The flawed Durbin-Marshall mandates have never been through a Congressional committee for open debate or amendments. The mandates are being pushed by the largest corporate mega-stores, who Sens. Durbin and Marshall count among their largest campaign contributors, and would allow them to process Americans’ credit cards on alternative, untested networks which have never processed credit cards.
Independent government agencies say these mandates are bad for local communities, small businesses and American cardholders. A report from the Congressional Research Service found it unlikely small businesses would benefit while card security would be harmed. The Federal Reserve of Richmond found when similar mandates were imposed on debit cards, merchants either kept prices the same or raised them while debit card fraud increased and community banks lost revenue used to offer consumer benefits like free checking. And, the Government Accountability Office reported the federal government receives cost savings and efficiency benefits from the current credit and debit card payments systems.
This bad idea is not a new idea. Over the last several years, opposition to the Durbin-Marshall mandates has continued to grow. Community banks and credit unions in all 50 states have come out against these harmful mandates and Airbus, Boeing, Embraer, RTX Corporation and General Electric Aerospace joined leading airlines and labor unions and groups in opposition, including the Allied Pilots Association, Association of Flight Attendants-CWA, Association of Professional Flight Attendants, Communications Workers of America, International Association of Machinists and Aerospace Workers, Regional Airline Association, Southwest Airlines Pilots Association, and Transportation Workers Union of America.
Additional research on the harm the Durbin-Marshall mandates would cause is available here.
Background on the Sanders-Warren-Hawley Price Caps:
Proposals to cap credit card interest rates at 10% would dramatically restrict access to credit for all Americans. An Electronic Payments Coalition study found nearly 90% of current cardholders – between 175-190 million Americans – would effectively lose access to credit. Essentially, any American with a credit score of less than 740 – well above the national average – would see their card eliminated or credit limit drastically reduced.
An economic review by the Federal Reserve Bank of Richmond from November / December 1990 on the impact of the Carter Administration’s rate caps found:
- “Retail sales fell at the fastest rate in 29 years.”
- The Federal Open Market Committee reported, “The contraction in activity was projected to be somewhat larger than had been anticipated a month earlier and to be accompanied by a substantial increase in unemployment.”
- “The [rate caps] contributed to the steep fall-off in economic activity.”
- Creditors responded by stopping the acceptance on new card applications and reducing credit lines. Where these steps were not taken, annual fees were introduced.
The report concluded, “The 1980 experience makes clear the dangers involved in using credit controls to fight inflation” and notes the article was written “in the hope that policymakers will be more aware of the dangers of credit controls in the future.”
Americans with shorter credit histories, like young adults 25 and under, and small business owners, who often put business purchases on their personal credit card, would be harmed by these reductions in credit. The reduction or elimination in credit would crush consumer spending and hurt our nation’s economy.
Senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) last year introduced legislation capping credit card APRs at 10%.
Key Findings in the new EPC report:
- 82–88% of open credit card accounts would effectively lose access to credit under a 10% APR cap.
- Nearly every credit card account associated with a credit score below 740 would be closed or severely restricted.
- 175–190 million American cardholders would effectively lose access to credit cards nationwide.
- All remaining cardholders — regardless of credit score — would face lower credit limits, tighter underwriting standards, and reduced or eliminated rewards.
- LMI households and young consumers would be most likely to lose access, limiting their ability to build credit or manage financial shocks.
Consumers shut out of credit cards would likely turn to higher-risk alternatives exempt from the cap, including payday lenders, unregulated online lenders, title lenders, and pawn shops.
Even consumers who retain access to credit would see their cards become less useful. Reduced credit limits and tighter standards would make it harder to cover emergencies, smooth household spending, or manage cash flow — particularly for families already living paycheck to paycheck.
The average credit score for Americans is approximately 715, with Gen Z, those born since 1997, having an average score between 667-678, depending on the model. The Federal Reserve Bank of New York found the average credit score for low-income Americans was 658 and middle income at 735.
For young Americans, the consequences could be long-lasting. Credit cards are often a primary entry point into the financial system, helping students and early-career workers build a credit history needed to rent an apartment, buy a car, or qualify for a mortgage. Restricting access would delay or derail that progress for millions.
Small businesses would also face serious fallout. Many rely on credit cards to manage inventory purchases, cover short-term expenses, and bridge gaps in cash flow. Reduced access to revolving credit would limit growth, strain operations, and make it harder for entrepreneurs, especially minority- and women-owned businesses, to compete.