Last Friday, ten banking and payments trade associations, including the Electronic Payments Coalition, wrote a joint letter to Congress stating “strong opposition” to the Credit Card Competition Act, and a related amendment proponents of the bill seek to attach to the National Defense Authorization Act.
The letter pointed to both pieces of legislation as potential amendments to NDAA, a strategy that sponsors of the legislation unsuccessfully attempted in the prior congressional session. It’s not clear yet whether they’ll try that route again. The letter was posted on the EPC website, but that organization didn’t immediately respond to a question about the suggestion of the legislation being attached to the NDAA.
The five-page letter warns of unintended ill-effects for military families if the legislation passes, such as the loss of credit card rewards, and claims the legislation is an attempt by retailers such as Albertson’s and Kroger to, “goose their triple-digit profit increases even further.”
Last month the EPC, along with seven other trade groups, put out a press release objecting to the legislation the day before it was introduced. Friday’s letter marks the latest volley in an ongoing fight over the CCCA, a bipartisan piece of legislation aimed at breaking the market dominance of credit card companies Visa and Mastercard.
The Saga of the Credit Card Competition Act
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July 2022
Sen. Dick Durbin (D-IL) first introduces the CCCA bill in the Senate.
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September 2022
Rep. Peter Welch (D-VT) introduces a companion bill in the U.S. House of Representatives.
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October 2022
Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS) try and fail to attach the CCCA onto the National Defense Authorization Act.
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February 2023
The National Association of Federally-Insured Credit Unions writes a letter to Congress protesting the expected reintroduction of the CCCA.
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June 6, 2023
Eight bank trade associations, including the EPC, release a statement opposing the reintroduction of the CCCA.
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June 7, 2023
Sen. Durbin and Rep. Lance Gooden (R-TX) reintroduce CCCA bills in the Senate and House, respectively.
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July 14, 2023
The Electronic Payments Coalition joins nine other trade associations in writing a letter to Congress protesting the CCCA and a related amendment to the NDAA.
This is Sen. Durbin’s second attempt to pass the law, which has been reintroduced in both the House and the Senate after failing to gain traction last year.
Legislators aren’t the only group hoping to see the bill passed. Merchants and retailers have long wanted options beyond Visa and Mastercard in order to cut down on interchange fees charged by the card giants.
The card companies say these fees help fund important consumer benefits, including fraud protection and loyalty programs.
