Credit Card Competition Act Eliminated from Final Draft of Senate NDAA Bill

Earlier this month Cornerstone League, along with CUNA, successfully opposed the inclusion of interchange amendments in the draft Senate FY23 National Defense Authorization Act (NDAA).

Text was recently released of the bipartisan agreement on a Senate substitute amendment for the NDAA which may be considered when Congress returns in November. The Credit Card Competition Act (CCCA) was not among the amendments included in the substitute, nor was an amendment to study interchange costs on military bases.

The CCCA seeks to create new routing mandates that would affect the way financial institutions issue credit. The CCCA was introduced in July by Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.), followed by the late September unveiling of the House companion to the bill by Reps. Peter Welch (D-Vt.) and Lance Gooden (R-Texas).

Cornerstone League and credit unions across our region have vigorously opposed the addition of these amendments to the NDAA and the fact that neither amendment was included in the Senate version demonstrates the impact of Cornerstone and credit unions’ efforts. 

“The Credit Card Competition Act and the Welch-Gooden bill are misguided pieces of legislation that will do much more than hurt consumers,” said Jim Phelps, Cornerstone League EVP and chief advocacy officer. “The legislation not only will lead to retailers choosing less secure networks and putting consumers’ data privacy at risk, but it will also place unnecessary burdens on financial institutions.”

The Senate is expected to vote on the NDAA next month. Although Congress is currently in recess until after Election Day, it’s critical that credit unions continue to fight against the CCCA. There is still a chance the interchange-related amendments could be introduced during floor debate on the NDAA. Cornerstone encourages credit unions to contact members of Congress via phone and email to ensure they understand our position. Please take a moment to send an email via CUNA’s Action Alert website to oppose the CCCA.