American Banker recently published an op-ed by American Bankers Association’s (ABA) Rob Nichols, America’s Credit Unions’ Jim Nussle, and Independent Community Bankers of America’s (ICBA) Rebeca Romero Rainey on the harm of the proposed Durbin-Marshall Credit Card Bill. The trade association leaders warn of negative consequences for consumers, community banks, and credit unions if Congress enacts proposed routing mandates on credit cards, urging lawmakers to prioritize consumer interests over corporate mega-stores looking to increase their bottom lines. Together, ABA, America’s Credit Unions, and ICBA represent thousands of local financial institutions in all 50 states.
"The credit card convenience, security and value you prize is under attack by the country’s largest retailers. If they succeed in their attack, corporate megastores like Walmart and Amazon will see their already substantial profits rise at your expense, and you will see the choices and the card features you love disappear," the joint op-ed read.
"Large corporate stores are working to pass regulations and laws they say will help Main Street but, in reality, would pad the profits of the mega-retailers that have decimated local small businesses for decades."
"If the mega-store proposals become law, you lose that control. Large retailers will be allowed to undermine everyone’s financial security by processing credit card transactions on the cheapest networks, regardless of customer preference or security."
"These new mandates will not only jeopardize your security — they will also drive up costs for community banks and credit unions across the country."
"Consumers will see the loss of popular credit card rewards programs while also experiencing more fraud. It’s a double whammy that will especially hurt the budgets of families who are already struggling in this unpredictable economy."