WASHINGTON, D.C. – Electronic Payments Coalition Executive Chairman Richard Hunt issued the following statement after the Senate Banking Committee reiterated promises to hold a hearing on the Durbin-Marshall Credit Card Mandates legislation:
“We have always welcomed an open and transparent dialogue about how these government mandates would severely impact American households, small businesses, local community banks and credit unions, and our nation’s broader economy.
“Any serious discussion of these proposals must examine independent research from academics and nonpartisan government agencies and demand clear answers from the largest corporate megastores on why, when Congress imposed similar mandates on Americans’ debit cards, they failed to lower prices for consumers as promised. Instead, these megastores kept the windfall for themselves and, in many cases, continued to raise prices – leaving families, small businesses, and community financial institutions to bear the costs.
“These hearings should also include a full examination of the competitiveness of the entire payments ecosystem, which already provides consumers and small businesses robust options – from cash and checks to fintech and crypto in addition to safe, secure, efficient card payments families and small businesses rely on every single day.”
Background: 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 that have never processed credit cards safely.
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. When Sen Durbin inserted the debit mandates into legislation on the Senate floor, lobbyists for large corporate retailers promised that the savings would be passed along to consumers. The reality was quite different. Then–Home Depot CFO Carol Tomé admitted the savings would “benefit” Home Depot to the tune of $35 million annually without mentioning a single penny of savings for consumers. The Federal Reserve of Richmond found 98% merchants raised prices or kept them the same while debit card fraud increased, and community banks lost revenue used to offer consumer benefits like free checking.
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.