State Bankers Association Letter to Senate and House Opposing Credit Card Competition Act

Re: State Bankers Associations Oppose Consideration of Marshall-Durbin-Gooden-Lofgren Credit Card Competition Act in Appropriations Bills and Resolutions 

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

As local associations representing virtually all banks of all sizes in the Nation, we write to express our strong opposition to the inclusion of the so-called “Credit Card Competition Act” in any appropriations legislation. The Marshall-Durbin-Gooden-Lofgren bill 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-Lofgren bill will raise costs on consumers, reduce access to important card benefits, imperil payment system security at a time of growing global risks, and harm community financial institutions and their small business customers. This legislation is opposed by military financial services organizations because it will reduce access to credit to those serving in uniform. 

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 “exempts” 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-Lofgren “Credit Card Competition Act.”

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