Joint Letter to the Senate Committee on Credit Card Competition Act

Dear Chairman Durbin and Ranking Member Graham:

We are writing to express our strong opposition to the Credit Card Competition Act (S. 1838 Durbin-Marshall bill) or any other expansion of the Durbin amendment. Any legislative initiatives to expand the power of the federal government to intervene in the U.S. credit card market would not only harm our members, but also small businesses and consumers across the country.

We also want to share our deep disappointment with the committee's decision to schedule a lame duck hearing promoting this misguided legislation without hearing testimony from a community bank or credit union. If the Committee's goal is to educate lawmakers and the public, these financial institutions could detail the real harm CCCA will bring to the customers and communities they serve. They could have also explained how the bill fails to effectively exempt them from the bill's requirements despite claims to the contrary.

Background

The Durbin amendment and subsequent rules issued by the Federal Reserve (Regulation II) imposed both a cap on debit card interchange fees and required debit cards issued in the U.S. to enable the use of at least two unaffiliated payment networks.

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