The Electronic Payments Coalition announced on X that the Durbin-Marshall credit card mandates pose a costly risk. Citing research from Texas A&M University, the group said the proposed changes would not benefit consumers and could double credit card fraud within 10 years.
According to Texas A&M University research referenced by the Electronic Payments Coalition, changing the current payments system through the Durbin-Marshall Credit Card Mandates would "fail to benefit consumers." The study indicates that such mandates would give corporate mega-stores a significant advantage over smaller businesses and consumers, leading to an unbalanced market. The research further explains that these policies risk reducing incentives for ongoing investments in payment security, a concern highlighted by the Electronic Payments Coalition in its statement.
The coalition cites findings from Texas A&M University, which warn that implementing the Durbin-Marshall mandates could double the rate of credit card fraud within the next decade. The report argues that diminished interchange fee revenue may result in less funding for advanced fraud prevention tools and security technology. The analysis emphasizes that these security consequences could directly affect both consumers and financial institutions, raising the overall risks in the payments ecosystem.
According to the coalition, the Durbin-Marshall mandates would shift competitive advantages toward large retailers while threatening ongoing investments in security and innovation across the financial sector. Industry experts, as referenced by the coalition, believe that lost interchange revenue could stifle the development of new security features and fraud deterrence measures. The coalition asserts that such disruptions would undermine the stability and reliability of the U.S. payments system.
The Electronic Payments Coalition is an alliance of credit unions, community banks, payment card networks, and financial institutions. According to its official website, it advocates for secure, efficient, and accessible electronic payment systems for consumers and businesses in the United States. Its mission includes opposing regulatory proposals like the Durbin-Marshall mandates that it believes would negatively affect payment security and market fairness.