The Defense Credit Union Council (DCUC) has expressed concerns regarding the Credit Card Competition Act, which is part of the GENIUS Act. According to a post on X, the DCUC believes this legislation threatens the financial readiness of military families and impairs community credit unions' ability to serve them.
Congress.gov reports that the Durbin-Marshall Credit Card Competition Act was introduced in the U.S. Senate in 2023 with the intention of fostering competition in the electronic credit transaction market. The bill mandates that covered credit card issuers must facilitate at least two unaffiliated networks for processing transactions, aiming to lower merchant fees. This proposal has ignited discussions about its potential impact on credit rewards programs and consumer options.
Oxford Economics forecasts that if enacted, the Credit Card Competition Act could lead to a $227 billion reduction in U.S. GDP and result in 156,000 job losses over three years. The report links these economic consequences to diminished rewards incentives, which are anticipated to curb consumer spending, especially within travel and tourism sectors. For instance, spending might decrease by $1.1 billion in Orlando, $855 million in New York, and $785 million in Las Vegas—underscoring the susceptibility of economies reliant on tourism.
Convenience Store News indicates that U.S. senators are attempting to attach the Credit Card Competition Act to the GENIUS Act and other pending bills as a strategy to bring it to a vote. This tactic has faced resistance from various industry groups and stakeholders who argue against advancing such significant legislation through broader legislative packages instead of standalone debate.
The DCUC represents credit unions serving U.S. military personnel and Department of Defense staff globally. It offers advocacy, education, and networking opportunities aimed at ensuring these credit unions can effectively support military members and their families while safeguarding their financial preparedness.