July 28, 2022

Durbin, Marshall expected to introduce NAFCU-opposed interchange legislation

cap Senators Dick Durbin, D-Ill., and Roger Marshall, R-Kansas, are expected to introduce legislation as soon as today in an effort to expand the “Durbin Amendment,” which was enacted in 2010 as part of the Dodd-Frank Act. The NAFCU-opposed legislation, as proposed, would expand the interchange process by creating a new credit card routing mandate, which would be a direct detriment to credit unions and their members while lining the bottom lines of big-box retailers.

Retail groups want the ability to route credit transactions to the cheapest networks – many of whom have underinvested in their platforms with little concern for security innovations – leaving the burden on consumers, small businesses, and financial institutions to clean up when things go wrong.

“This proposed bill is nothing more than a one-sided attempt by big box retailers to shift costs from themselves to consumers. With healthy competition already in the payments network, this bill is a solution in search of a problem and the so-called solution will be at the detriment of consumers and financial institutions: more risk, the elimination of affordable banking products, higher credit cost, and loss of rewards consumers expect,” said NAFCU Senior Vice President of Government Affairs Greg Mesack.

“Small businesses, the ones who are supposedly being helped by this legislation, will actually benefit the least. All of this harm will be done in the name of fattening the bottom line of big box retailers,” added Mesack.

In speaking with American Banker yesterday, Mesack shared that despite industry claims, there is plenty of existing competition at the point of sale between payments networks including the cash-payment option. “Merchants’ groups can talk about mom-and-pop stores, but this is really an attempt at legislative cost-shifting by big-box retailers who are trying to further reduce their costs,” concluded Mesack.

NAFCU will fight tooth and nail to make sure no more harmful interchange rules hurt consumers, but we need our credit union members to help us by reaching out to their Senators and letting them know credit unions oppose government price controls.

Review the Interchange Advocacy Page on the NAFCU website for more information on the association’s long-standing position; the NAFCU Grassroots Action Center can also be utilized to contact your Senator regarding this issue.

Your voice on this issue has never been more important. If you’re willing to share a public statement in opposition to this legislation, please email