Cornerstone League is asking credit union advocates to TAKE ACTION today to oppose harmful interchange legislation.
On Monday, Reps. Peter Welch (D-Vt.) and Lance Gooden (R-Texas) introduced the House companion to the Credit Card Competition Act of 2022 (HR 8874), presented in July by Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.). This new House bill would also change the interchange system by allowing merchants to bypass established secure payment networks.
Cornerstone strongly opposes this legislation, as it would bring further financial benefits to Big Box retailers at the expense of consumers. It’s critical that we take action to discourage members of Congress from co-sponsoring these bills.
We created an official action alert to share with your staff and board of directors. There is a slightly different message for House and Senate members reflecting the bills introduced in those chambers.
Consumers across the country rely on credit cards to make life happen. Accepted nearly everywhere, credit cards offer robust security, fraud protection, and access to credit that may not otherwise be available. If retailers are allowed to simply choose the cheaper networks that haven’t invested in the latest security technology, consumer payment data will be vulnerable to foreign networks.
Routing mandates on credit cards will lead to less secure, less innovative, and higher-risk transactions for American consumers. We need to send a strong message to lawmakers that consumers, small businesses, and small community financial institutions will lose the most if this happens.
Thank you as always for acting on behalf of credit unions. If you have any questions about this issue, don’t hesitate to reach out to any of the Cornerstone advocacy team.
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