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NAFCU, CU groups warn against harmful interchange legislation
With the anticipated reintroduction of legislation sought by big-box retailers to expand interchange requirements to credit cards, NAFCU, the Defense Credit Union Council, and CUNA are joining together this morning to warn congressional leaders of the legislation’s harmful impacts on consumers and credit unions.
“Big-box retailers support this bill because it requires banks and credit unions to route credit card transactions to the cheapest network without passing savings on to the consumer – all to maximize profit,” the credit union trade groups wrote. “Not only are savings kept by the merchant, this legislation also increases the cost of basic banking services for consumers – hitting lower-income families the hardest along with restricting access for military service members and their families.”
The groups note the bill is misleadingly named, as it will actually “restrict and eliminate” consumers’ choice of payment network and reduce the trust, security, benefits, and protections that consumers currently seek in their credit card provider.
“In fact, now more than ever we need to put consumers first, let them decide how to pay for products and services, and keep their member benefits intact. We urge you to stand with us and stand up to the powerful interests pushing this by rejecting this legislation,” the groups concluded.
Read the letters sent to House and Senate leadership.
The bill is expected to be reintroduced today. NAFCU successfully kept the flawed legislation from moving forward during the last congressional session and will continue its robust advocacy to fight against big-box retailers’ efforts again this year.
Credit unions are encouraged to bolster NAFCU’s advocacy by contacting lawmakers via the association’s Grassroots Action Center and sharing a statement that the association can publicly use with media, members of Congress, and others to oppose this bad policy.