In a recent letter, several financial organizations have voiced concerns over the potential impact of the Durbin-Marshall bill on consumers, small businesses, and financial institutions. The American Bankers Association, America’s Credit Unions, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Defense Credit Union Council, Independent Community Bankers of America, Electronic Payments Coalition, Mid-Size Bank Coalition of America, and National Bankers Association collectively warned against expanding federal government intervention in the U.S. credit card market.
The letter suggests that such legislative initiatives could reduce consumer choice and increase costs and fraud risks. It also highlights findings from a 2024 paper by a University of Miami finance professor which indicates that small businesses might face further competitive disadvantages compared to large corporate megastores if the bill were enacted. The paper estimates that savings would primarily benefit retailers with annual sales exceeding $500 million.
The associations argue that consumers would lose access to popular rewards programs. They cite research from the International Center for Law and Economics showing that 77% of cardholders with household incomes below $50,000 possess an active rewards card. The groups believe the Durbin-Marshall bill would remove these benefits from lower-income Americans.
Furthermore, they point to evidence suggesting that corporate megastores may not pass savings on to consumers. A report by the Congressional Research Service states it is unclear whether retailers would transfer interchange savings to consumers and notes potential increases in fraud incidences.
The associations emphasize the competitive nature of the U.S. payments ecosystem. They assert there is no significant concentration in the credit card market and highlight various payment options available to businesses and individuals.
“The payment card system is convenient, secure, and hassle-free,” they wrote. “It protects consumers against fraud...and powers the American economy.” They warn that any legislation interfering with this system could jeopardize its benefits.
The American Bankers Association represents a $24.1 trillion banking industry employing around 2.1 million people. America's Credit Unions advocates for over 140 million members nationwide. The Association of Military Banks of America includes banks serving military customers since 1959.
The Bank Policy Institute represents universal banks in public policy matters while the Consumer Bankers Association promotes policies for a stronger industry since 1919. The Defense Credit Union Council champions credit unions serving military communities since 1963.
The Electronic Payments Coalition supports electronic payments infrastructure while the Independent Community Bankers of America fosters community bank environments through advocacy and education.
Founded in 2010, MBCA aids mid-size banks with best practices sharing opportunities while the National Bankers Association focuses on minority-owned banks across multiple regions since 1927.