On March 24, 2025, a coalition of financial trade associations filed a letter warning against legislative initiatives that would increase federal government intervention in the U.S. credit card market. The group includes the American Bankers Association, America’s Credit Unions, and several other organizations representing various financial institutions. They argue that proposals such as the Durbin-Marshall bill or any expansion of the Durbin Amendment would negatively impact consumers, small businesses, and financial institutions.
The letter highlights concerns that such legislation could reduce consumer choice, increase costs and fraud risks, and create economic challenges for smaller financial institutions. Citing a 2024 paper by a University of Miami finance professor, the associations warned that small businesses might face increased competitive disadvantages if the Durbin-Marshall bill becomes law. It is estimated that savings would primarily benefit retailers with $500 million or more in annual sales.
Further issues raised include potential losses for consumers regarding popular rewards programs. According to the groups, reducing rewards and cashback opportunities could significantly harm minority and lower-income consumers. "The International Center for Law and Economics found that ‘77% of cardholders with a household income of less than $50,000’ have an active rewards card," they noted.
The letter also questions whether corporate megastores would pass savings on to consumers. It references a report from the Congressional Research Service stating uncertainty over whether interchange savings would be shared with consumers while suggesting higher fraud incidences might occur.
Emphasizing existing competition within the U.S. payments ecosystem, which offers various payment options like credit cards, debit cards, buy-now-pay-later schemes among others, the associations argue there is no significant concentration in the credit card market compared to other industries.
“The payment card system is convenient, secure, and hassle-free,” stated the groups. “It protects consumers against fraud...and powers the American economy.” They expressed concern that any legislation affecting this system jeopardizes its benefits.