Joint Trades Letter Opposing the Credit Card Competition Act (Durbin-Marshall bill)

Dear Members of Congress:

The American Bankers Association, America's Credit Unions, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Defense Credit Union Council, Independent Community Bankers of America, Electronic Payments Coalition, Electronic Transactions Association, Mid-Size Bank Coalition of America, and National Bankers Association are writing to reiterate our strong opposition to the so-called Credit Card Competition Act (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 harm consumers, small businesses and financial institutions alike by reducing choice, increasing costs and fraud risks, and creating economic challenges for smaller financial institutions.

Small Businesses Benefit Both from Card Acceptance and as Card Users

Government intervention in the credit card market would disadvantage small businesses. A recent paper by a University of Miami finance professor found that small businesses would be put "at a further competitive disadvantage" to large corporate megastores if the Durbin-Marshall bill were to become law, estimating that almost all of those savings will accrue to retailers with $500 million or more in annual sales, with little going to small businesses.

Download the joint trades letter to read the full text.