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Last update: 04/16/14

Credit & Debit Cards

Community banks provide debit and prepaid cards to their customers to execute the exchange of monetary value. Community banks strive to balance the mandate to maintain transparent, safe, sound and profitable payment card programs with the needs of financially varied customer bases.


  • ICBA strongly supports a payments card operating environment governed primarily by network rules to ensure a well functioning and balanced payment card system that provides tremendous benefit for community banks, their customers and millions of merchants of all sizes.
  • ICBA strongly opposes efforts that, while theoretically intended to prevent unfair, deceptive or abusive payment card acts or practices, would adversely affect community bank payment card issuers and agents as well as their customers. National interest rates and fee caps would directly harm customers with less-than-perfect credit, especially those at the margin, and further reduce competition and stifle innovation in features and functionality.
  • ICBA opposes efforts to extend consumer protection provisions to small business payment cards.
  • ICBA supports simplified credit card disclosures; however, ICBA opposes any efforts to create a disclosure regime that would have the effect of limiting choices for consumers across the socio-economic spectrum, or subjecting community banks to legal and compliance scrutiny.
  • ICBA supports consumer choice in payment card offerings through enhanced transparency, education and fairness.
  • ICBA supports efforts to transition payment cards from magnetic strip technology to chip technology provided community banks are given sufficient time to plan for and implement this transition.


Congress and the federal agencies must exercise caution in ensuring that efforts to establish and maintain an environment protecting consumers from unfair, deceptive, or abusive acts or practices does not unnecessarily impede community banks’ ability to respond to changing markets and consumer needs. A well-informed consumer has the ability to shop with his or her feet, a free-market factor that benefits community banks that thrive on successful relationship banking.

National interest rates and fee caps would reduce competition as small issuers without scale may exit the business if they cannot compete with larger scale issuers on price alone. Efforts to place caps on rates and fees would also force small issuers to cut off credit to those most in need, and would likely raise the cost of credit to all other borrowers.

Congress and the federal agencies should remain mindful that community bank payment card programs need to be profitable. If this balance is not maintained, community banks will give greater consideration to discontinuing various products, particularly credit cards, which would result in further consolidation of the industry and fewer choices for consumers. Policies that generate more compliance costs for community banks will not benefit consumers.

Payment card system stakeholders – networks, merchants, card issuers and cardholders – are concerned about the growing security risks and the need to move to more sophisticated and secure technology such as chip and PIN. But re-engineering a payments system is not easy as there are many players that need to collaborate, from the card networks and processors to the bank issuers and merchants. ICBA will participate actively in this migration by conveying the community bank perspective to all stakeholders and communicating the implications of this migration to community banks and their customers.

Staff Contact: Viveca Ware

Date Title Source/Publication
04/29/2014 ICBA, NAFCU Call for Effective Data-Security Laws NewsWatch Today
03/27/2014 Report: Target Missed Chances to Respond to Data Breach NewsWatch Today
03/21/2014 Appeals Court Decides Against Merchant Effort to Increase Price Caps Windfall News Release
03/13/2014 ICBA: Merchants Should Help Community Banks Cover Fraud Losses NewsWatch Today
03/10/2014 Disclosing Credit Scores on Credit Card Statements Letter to Regulators
03/10/2014 Survey: Majority Find Merchants Responsible for Data Breaches NewsWatch Today
03/05/2014 Retailer Data Breach: The Community Bank Perspective Testimony
02/25/2014 Neiman Marcus Reduces Estimate of Compromised Cards NewsWatch Today
02/21/2014 ICBA Survey Finds Community Banks Reissue 4M Cards Following Data Breaches NewsWatch Today
02/19/2014 Community Banks Reissue More Than 4 Million Payment Cards Following Retailer Data Breaches News Release
02/19/2014 ICBA Taking Meaningful Steps to Stronger Payments System CEO Alert
02/18/2014 Fine: Banks Focused on Protecting Customers Following Retailer Breaches NewsWatch Today
02/14/2014 ICBA Pursues Cybersecurity Dialogue with Industry, Policymakers NewsWatch Today
02/13/2014 Trade Groups Announce Cybersecurity Partnership NewsWatch Today
02/13/2014 Senators Propose New Retail Information Sharing Analysis Center NewsWatch Today
02/13/2014 ICBA Welcomes NIST Report on Cybersecurity NewsWatch Today
02/12/2014 Op-Ed: Banks Pay Price for Retailers' Data Breaches NewsWatch Today
02/12/2014 ICBA, Coalition: Retailers Pointing Fingers, Not Taking Responsibility NewsWatch Today
02/10/2014 ICBA: Merchants Should Help Community Banks Cover Fraud Losses NewsWatch Today
02/10/2014 Loving, Fine: ICBA Taking Meaningful Steps to Stronger Payments System NewsWatch Today
02/10/2014 Community Banks Reissue 4M Cards Following Data Breaches NewsWatch Today
02/07/2014 ICBA Details Data Breach Impact on Community Banks for Congress NewsWatch Today
02/06/2014 ICBA, Coalition: Retailer Claims on Data Breaches Misleading NewsWatch Today
02/05/2014 ICBA Continues Advocating Reforms to Strengthen Payments System NewsWatch Today
02/04/2014 The National Cybersecurity and Critical Infrastructure Protection Act (H.R. 3696 Letter to Congress
02/04/2014 ICBA, Coalition Urge Reforms to Strengthen Payments System NewsWatch Today
02/04/2014 ICBA: Costs of Data Breaches Should Be Borne by Responsible Parties NewsWatch Today
02/03/2014 New Data Breach Hits More Than 40 Companies NewsWatch Today
01/31/2014 ICBA Advocates Effective Data-Security Laws NewsWatch Today
01/28/2014 CFPB Issues Consumer Advisory on Retailer Data Breaches NewsWatch Today
01/28/2014 ICBA Supports Bill Offering Safe Harbor from New Data-Security Regs NewsWatch Today
01/27/2014 ICBA Offers Q&A, Audio Call Recording on Retail Security Breaches NewsWatch Today
01/24/2014 ICBA Offers Q&A, Audio Call Recording on Retail Security Breaches NewsWatch Today
01/23/2014 ICBA Outraged at Retailer Letter Blaming Banks for Data Breaches NewsWatch Today
01/22/2014 ICBA Issues One-Pager on Target REDcard NewsWatch Today
01/15/2014 ICBA, Bancard Ask Visa, MasterCard for Audited Statement on Breach Response NewsWatch Today
01/15/2014 ICBA Posts Video with Tips on Dealing with Retail Security Breaches NewsWatch Today
12/20/2013 Fed: Credit, Debit Cards Account for Two-Thirds of Noncash Payments NewsWatch Today
10/03/2013 ICBA Issues Statement on CFPB CARD Act Report News Release
08/01/2013 Building a Small Business Card Portfolio Brick by Brick Bancard Confidential
03/12/2013 ICBA and CPI Card Group Extend Agreement, Providing Debit and Credit Card Manufacturing Services for Community Banks News Release
02/28/2013 ICBA: Survey Finds Community Banks Focused on Reducing Payments Fraud News Release
08/27/2012 ICBA Offers Tips to Help Students Handle credit Wisely News Release
08/27/2012 Follow-up on Outcomes of Debit Card Issuer Survey Industry Letter to Regulators
02/22/2010 Regulation Z Credit CARD Act Provisions Chart
02/01/2009 Summary of Final Credit Card and Overdraft Protection Rules ICBA
ICBA Continues Advocating Reforms Following Retail Data Breach
ICBA Bancard

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