ABA, 52 State Bankers Associations Urge Congress to Reject Durbin Marshall Credit Card Mandate

WASHINGTON — The American Bankers Association and 52 state bankers associations today expressed strong opposition to the Durbin-Marshall Credit Card Mandate, also known as the Credit Card Competition Act (CCCA), warning in a new joint letter to Congress that the proposal would harm consumers, small businesses and banks of all sizes.

In the letter, the associations write that the legislation “would harm consumers, small businesses, and banks alike by reducing card choice, increasing fraud risks, reducing rewards, increasing the cost of allocating credit to borrowers, and creating economic challenges for smaller financial institutions.”

The groups note that nearly 15 years of data demonstrates that the original Durbin amendment failed to deliver promised consumer benefits. The letter further explains that expanding this failed framework to credit cards would produce similar outcomes, stating that “expanding this failed policy to impose new regulations on credit card interchange fees will lead to similar consumer harm.”

The associations also warn that “this legislation would limit credit access and upend credit card rewards programs, which are funded through interchange fees, with the worst effects being felt by minority and lower income consumers.” The letter cites an independent analysis that found the CCCA could cost the U.S. economy $228 billion and 156,000 jobs by eliminating rewards programs supporting travel and tourism nationwide.

The letter also raises concerns that the CCCA would primarily benefit large retailers rather than consumers or small businesses. According to the associations, “the CCCA will not increase competition in the credit card marketplace, but it will benefit corporate megastores at the expense of consumers, community financial institutions and smaller neighborhood retail merchants.”

In addition, the groups highlight significant fraud risks associated with the legislation, warning that the CCCA “will also enable a large increase in fraudulent card activity” and would reduce funding used to “invest in fraud prevention and other credit card security features” that protect consumers and small businesses.

Read the full letter here.

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $25.1 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $19.7 trillion in deposits and extend $13.2 trillion in loans.

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ABA, 52 State Bankers Associations Urge Congress to Reject Durbin-Marshall Credit Card Mandate

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