November 08, 2022

Fight against CCCA, interchange continues

CapitolEglin Federal Credit Union President and CEO Jerry Williams – a NAFCU member based in Fort Walton Beach, Fla. – penned an op-ed for The Capitolist, underscoring the many negative impacts of the 2022 Credit Card Competition Act (CCCA). In the op-ed, he stated that the CCCA “will not increase competition in the credit card marketplace. Rather, this bill will benefit mega-retailers at the expense of consumers and community financial institutions like EFCU who exist to serve our military members and their families.”

“Following the implementation of the original Durbin Amendment, which sought to regulate debit card interchange fees, a Richmond Fed report found that 98% of merchants did not pass savings from debit regulation to consumers and over 20% of merchants actually increased prices,” Williams noted. “Furthermore, this mandate resulted in the disappearance of many card rewards programs like airline miles and cash back that Americans of all income levels have come to enjoy.”

NAFCU President and CEO Dan Berger echoed similar sentiments in a CU Insights op-ed.

“The name of the legislation sounds nice on paper,” Berger wrote. “However, it is essentially a big-box bailout, imposing a back-door price control on credit card interchange fees that helps line the pockets of giant retailers at the expense of American families and Main Street.”

The association has remained a leading voice in the fight against the CCCA. NAFCU has wrote multiple letters to lawmakers urging them to oppose the legislation. Additionally, NAFCU has called on credit unions to use NAFCU’s Grassroots Action Center to speak out against the CCCA by sending a message to their lawmakers requesting them to oppose the harmful legislation. Credit unions are also encouraged to continue sending statements of opposition to the CCCA that can be used publicly in the media and with members of Congress to advocate against any last-minute attempt to move the unsound legislation forward.

Due to this relentless advocacy, the CCCA was not among the amendments included in the Senate substitute amendment for the NDAA. Although the Senate has opted to not attach this bill to the NDAA at this time, the CCCA, or other interchange amendments, could still be introduced during floor debate on the NDAA.

With the threat of interchange legislation still lurking, NAFCU will continue to oppose this bill. Credit unions can continue to help by using NAFCU’s Grassroots Action Center. Stay tuned to NAFCU Today for the latest from Washington.