Joint ABA and State Bankers Association Letter re Credit Card Competition Act

Dear Majority Leader Schumer, Republican Leader McConnell, Speaker McCarthy, and Democratic Leader Jeffries: 

As trade associations representing virtually all banks of all sizes in the Nation, we write to express our strong opposition to any introduction of the so-called “Credit Card Competition Act” or other legislation that would impose network routing requirements on credit cards. This legislation is an anti-consumer, anti-competitive, and cynical attempt by the largest global merchants and biggest grocery chains to obtain a subsidy for themselves at the expense of smaller competitors and consumers. The Marshall-Durbin-Gooden-Welch bill will raise costs on consumers, reduce access to important card benefits, imperil payment system security, and harm community financial institutions.

Make no mistake: this bill was specifically written to deliver a major payday for big retail and big grocery at a time that these giant retailers have been getting even bigger, increasing their profits, and raising prices on American consumers. We urge Congress to recognize that this bill is meant to distract from questions about big retail’s competitive landscape, which have attracted intense bipartisan concern from virtually every corner, including Congress, federal regulators, state attorneys general, consumer watchdogs, small business organizations, and labor and environmental groups.

Don’t believe the false claims from big retailers that this bill protects community banks or helps small businesses. The same promises were made during the Durbin Amendment debate a decade ago, yet small, “exempt” banks saw a quarter of their debit card revenue disappear and fraud costs increased after it became law. Small businesses saw little to no benefit, and many small retailers ended up paying more to accept cards because of the law’s prescriptive, one-size-fits-all regulations.

Our message to you is simple: on behalf of banks of all sizes in communities across America, we ask that you commit to actively opposing the Marshall-Durbin-Gooden-Welch “Credit Card Competition Act.”

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