Jason Stverak, Chief Advocacy Officer for the Defense Credit Union Council (DCUC), expressed concerns that the Credit Card Competition Act could compromise cybersecurity by channeling transactions through unvetted, foreign-controlled networks. This statement was made on X.
"It weakens cybersecurity by forcing transactions onto unvetted, foreign-controlled networks," said Stverak.
According to Congress.gov, the Credit Card Competition Act, also known as the "Durbin-Marshall Credit Card bill," aims to reduce interchange fees by mandating that networks other than Visa and Mastercard be available for transactions. Proponents argue it will foster competition among payment networks and decrease costs for merchants. Critics, however, claim it will diminish revenue for community banks and credit unions, affecting access to credit.
The Nilson Report indicated that Visa and Mastercard credit cards in the U.S. generated $5.884 trillion in purchase volume in 2022. They accounted for 578.75 million credit cards in circulation, with Visa holding a 52.7% market share and Mastercard 22.5%. These two networks dominate U.S. credit card transactions by both volume and card count.
A 2021 Federal Reserve report on debit card transactions highlighted that fraud losses to all parties of covered transactions totaled $1.5 billion. The study emphasized that network-level differences in fraud prevention and detection significantly impacted security outcomes. Expanding access to lesser-known networks could elevate exposure to such fraud risks.
Stverak has served as Chief Advocacy Officer for the DCUC since April 2024. Based in the Washington DC-Baltimore Area, he leads the organization's efforts in government affairs and legislative advocacy, supporting credit unions serving members of the U.S. military and their families.