State Republican and Democratic leaders recently authored op-eds agreeing that the Durbin-Marshall Credit Card Bill harms consumers, undermines local economies, and jeopardizes state governments reliant on credit card benefits.
Craig Bieber, former Executive Director of the Democratic Party of Virginia, wrote in the Richmond Times-Dispatch, “[Minority] groups are also the ones most vulnerable to any increased restrictions on loans and credit. [The Durbin-Marshall Credit Card Bill] is an anti-union ploy that will hurt travel, small businesses and the diverse communities of our city, region and state.”
John McCuskey, West Virginia’s State Auditor, wrote in Real Clear Markets, “[The Durbin-Marshall Credit Card Bill] will reduce the rebates West Virginia receives through its Purchase Card Program — and, potentially, reductions in the state and local government services that are funded in part by these rebates, leaving our taxpayers picking up the tab or doing with less.”
Both op-eds can be found in full below:
When Lawmakers Prioritize Profits for Big-Box Chains, Everyone Loses
By: Craig Bieber
Former Executive Director of the Democratic Party of Virginia
June 4, 2024
Richmond has one of the hottest job markets in the country. The Wall Street Journal examined nearly 400 cities to compile their latest rankings. I’ve worked for over 50 years in Virginia and know what a great place we have here. New businesses are opening up all the time despite increasing costs; employers are looking to hire. This doesn’t mean it’s easy out there in the job market but we are doing better than much of the country. In fact, wages are up in most industries in our capital city.
Part of this success is due to Richmond's welcoming environment for entrepreneurs. As a former executive director of the Democratic Party of Virginia, I am proud of how our legislators have ensured a business-friendly atmosphere while continuing to fortify workers’ rights. We also have a strong history of racial minorities owning businesses which contributes significantly to Virginia’s economic health.
Yet these groups are vulnerable to increased restrictions on loans and credit. A bill under review aims to restructure our financial system fundamentally. The Credit Card Competition Act would allow big-box retail chains to gain millions if approved while removing power from credit unions and community banks over security standards for their cards.
This legislation would drain revenue from our financial system leading to fewer funds available for small businesses and personal loans causing banks and credit unions to deny higher-risk individuals who may lack strong credit scores or cosigners. It will also make it harder for businesses needing inventory purchases or supplies using credit cards.
Hurting disadvantaged communities' ability to get loans will impact our entire state making it more challenging to start or grow businesses thus reducing hiring opportunities. It will also be harder for average consumers seeking mortgages car loans or credit cards affecting families who rely on points from such cards for vacations or necessary expenses.
The bill could negatively affect those working in tourism-dependent cities like Richmond as it would nearly eliminate rewards programs causing potential declines in travel impacting union jobs within industries opposing this bill including Transport Workers Union of America International Association Machinists Aerospace Workers among others.
I hope U.S senators Tim Kaine Mark Warner thoroughly review this bill voting against it if brought forward ensuring this anti-union harmful legislation does not pass benefiting only large chains at ordinary citizens' expense.
Taxpayers Will Pick Up The Credit Card Competition Act Tab
By: John McCuskey
West Virginia’s State Auditor
May 31 2024
Credit cards have revolutionized payments allowing faster more convenient transactions similar government-tailored purchase cards preferred by state local governments due numerous benefits identified by extensive U.S Government Accountability Office studies highlighting lower administrative costs income generation via rebates aiding payment management within agencies.
In West Virginia purchasing cards facilitated $695 million worth transactions during fiscal year 2023 generating significant taxpayer savings between $27-$157 million while collecting dispersing $69 million+ rebates past seven years enabling additional public services without raising taxes enhancing fraud theft prevention ensuring efficient appropriate fund usage across governmental levels however proposed legislation known as Credit Card Competition Act (CCCA) introduced Senator Dick Durbin threatens stability security associated benefits enjoyed currently statewide through altering payment routing choices potentially channeling transactions towards lesser-known networks likely compromising data privacy resulting reduced revenues affecting cardholder rewards escalating living costs impacting essential goods services accessibility moreover diminishing valuable rebate inflows crucial supporting varied public sector operations ultimately burdening taxpayers covering shortfalls arising thereby weakening secure transactional frameworks established presently suggesting investing new technologies legislating national data security standards fostering stronger resilient payment systems instead Congress should avoid wasting further resources deliberating counterproductive measures contrary stated goals.