CU-, League-Opposed Interchange Bill Reintroduced in Congress; Contact Your Lawmakers Now!
A credit union- and League-opposed interchange measure has been reintroduced in the U.S. Senate (S.1838) and House (H.R. 3881). Credit unions are urged to mobilize their staff, officials and members in opposition to the bill.
Use the League Action Center to email your lawmakers quickly and easily!
A group of bipartisan lawmakers - Sens. Dick Durbin (D-Illinois), Peter Welch (D-Vermont), Roger Marshall (R-Kansas) and J.D. Vance (R-Ohio) - on Wednesday reintroduced the bill in the Senate (S.1838). A House version of the bill (H.R. 3881) was introduced as well, backed by Reps. Lance Gooden (R-Texas) and Zoe Lofgren (D-California).
The legislation would cause harm to both consumers and financial institutions, compromise data security, and completely upend the way credit card transactions are processed.
This latest version of the Credit Card Competition Act is very similar to the legislation introduced last year. See the information below on how this year's version differs. Last year's version of the CCCA did not advance to a vote, owing in large measure to the fierce opposition from credit unions and banks.
In meetings this year with Virginia's Congressional Delegation, we've noted our opposition to the measure, anticipating its reintroduction at some point.
"We believe that government intervention in credit card interchange will bring harmful disruption to a functioning marketplace," said League Chief Advocacy Officer JT Blau.
Changes in This Session's Bill
- Adds that routing cannot be limited to two networks if any of the networks are included on the list of “designated national security risks” under subparagraph D.
- Requires the list of “designated national security risks” to be updated every two years.
Under the CCCA, the Federal Reserve would issue regulations requiring credit card issuers with more than $100B in assets to include at least two unaffiliated networks on which an electronic credit transaction can be processed. Additionally, the two networks cannot be the networks holding the two largest market shares of credit cards issued in the U.S. by licensed members of such networks as determined by the Board at the time the regulations are issued.
Resources
- League Action Center (Email your lawmakers quickly and easily!)
- Track this legislation - H.R. 3881
- Track this legislation - S.1838
- Interchange FAQ (Password for League website required. Register here if you need one.)
- Joint Trade Association Letter to Senate
- Joint Trade Association Letter to House
- CUNA’s News Now Article
Articles and lawmakers' new releases.
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