Patrice Onwuka, Director of the Center for Economic Opportunity at the Independent Women’s Forum, has expressed concerns over the Credit Card Competition Act amendment. In a letter to U.S. senators, she said that the amendment would reduce access to credit for low-income Americans.
"This bill harms consumers, particularly low-income Americans, by reducing access to credit," said Onwuka, Director, Center for Economic Opportunity. "By authorizing the federal government to intervene in contracts between private parties, this encroachment will force small banks and credit unions to severely limit or cease providing co-branded cards that millions of consumers use every day."
The Credit Card Competition Act, reintroduced in 2023, requires banks with assets exceeding $100 billion to offer merchants at least two network choices for processing credit card transactions. This measure aims to limit Visa and Mastercard's market dominance. Proponents argue that it would foster competition and lower swipe fees for merchants, potentially reducing consumer prices. However, critics warn that the law could compromise transaction security and diminish consumer rewards. According to Congress.gov, Senators Dick Durbin and Roger Marshall introduced the bill in the Senate, where it remains under committee review.
A 2024 working paper from the University of Miami School of Business indicates that capping interchange fees could reduce revenues for small financial institutions by up to 15%, significantly affecting credit unions and community banks. The study cautions that this revenue loss could impair these institutions' ability to provide credit, particularly to rural and low-income borrowers. The author suggests that such policies might unintentionally worsen financial exclusion.
According to the Electronic Payments Coalition, interchange fees account for approximately 70–90% of the total cost merchants incur when accepting credit cards. This revenue supports fraud protection, network maintenance, and consumer reward programs. A Congressional Research Service briefing cited by the coalition indicates that reducing these fees could compel banks to cut back on popular perks like cashback and travel rewards. It may also lead to restricted credit access, especially for lower-income consumers who benefit from inclusive card offerings.
Onwuka is a regular media commentator on economic and cultural issues and holds a bachelor's degree from Tufts University and a master's from Boston College. She has appeared on Fox News, NPR, and other outlets discussing economic policy, race, and opportunity.