Influencing policy: Preserving choice, competition, and innovation in card payments
ICBA Expert Contact
Overview
Community banks provide a broad range of credit, debit, and prepaid card products that help consumers and businesses manage their finances and access payment services. These programs depend on a competitive marketplace that allows community banks to invest in security, innovation, customer service, and rewards offerings.
ICBA strongly opposes government intervention that distorts payment card markets, limits consumer choice, or threatens the long-term viability of community bank card programs. The association advocates for policies that support innovation, strengthen payment security, and enable community banks to continue meeting evolving customer needs.
ICBA Policy Priorities
Oppose the Credit Card Competition Act and related routing mandates.
Oppose additional government regulation of debit card interchange fees.
Oppose policies that artificially cap credit card late fees.
Oppose proposals to cap credit card interest rates.
Support consumer choice and competition in card products and services.
Promote payment card security through innovation and fraud prevention technologies.
Support sustainable credit, debit, and prepaid card programs.
Ensure community banks remain competitive as payment channels evolve.
Advocacy Impact & Progress
ICBA continues to advocate before Congress, federal agencies, regulators, and industry stakeholders to protect community bank card programs and preserve consumer choice. ICBA regularly submits comment letters, participates in industry discussions, and educates policymakers on the critical role card programs play in serving consumers, businesses, and local communities.
Get Involved
Community bankers can strengthen ICBA's advocacy efforts by staying informed on card-related policy proposals, participating in grassroots initiatives, and sharing the real-world impact of regulatory changes on customers and communities.
Policy Position and Background Information
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ICBA firmly rejects any attempts by the government to interfere with the pricing of financial products and services, including debit card interchange fees regulated by Reg II, the Consumer Financial Protection Bureau's (CFPB) $8 late fee, proposed credit card interest rate caps, and routing mandates outlined in the Credit Card Competition Act (CCCA). Such government intervention undermines the crucial principle of free market competition, hindering both issuers and consumers from selecting the payment card options that best meet their needs.
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ICBA strongly supports the continued viability of payment card systems that recognize the important role of community banks as digital delivery channels evolve.
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ICBA supports consumer choice in payment card offerings through enhanced transparency, education and fairness. However, ICBA opposes any efforts that would limit choices for consumers across the socio-economic spectrum or subject community banks to legal and compliance burdens.
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ICBA supports efforts to improve payment card security and decrease fraud through evolving card security technologies and consumer education.
Community banks provide a menu of payment card services to execute the exchange of monetary value. They strive to balance transparency, safety, soundness, and sustainability in payment card programs that support the needs of a financially varied customer base.
The Executive branch, Congress, and the federal agencies must exercise caution to not unnecessarily impede community banks’ ability to respond expeditiously to changing markets and consumer needs. They must recognize that community bank payment card programs cannot operate at a loss. If community banks cannot offer balanced card programs, they will be forced to consider discontinuing products, further consolidating the industry, resulting in fewer choices and limited access for consumers and small businesses.
Payment card system stakeholders are concerned about mitigating security risks and the need to adopt more sophisticated and secure technologies. To mitigate the risks resulting from increasing digital transaction volumes, it is critical for all stakeholders to deploy advanced technologies optimally designed to keep pace with the evolving threat landscape.