Oct. 06, 2022
Washington, D.C. (Oct. 6, 2022) — Ten leading financial services trade associations sent a letter to U.S. House and Senate leadership and the top members of the Senate and House Armed Services Committees warning them that attaching the so-called Credit Card Credit Card Competition Act of 2022 to the National Defense Authorization Act (NDAA) “will rob military families of their credit card rewards, reduce the availability of safe credit, and undermine the nation’s data security.”
The American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Credit Union National Association, Defense Credit Union Council, Electronic Payments Coalition, Independent Community Bankers of America, National Association of Federally-Insured Credit Unions, and National Bankers Association issued the following joint release today:
“Our actions must match our words when we say that we support our military personnel. Slipping the controversial Credit Card Competition Act into the NDAA would compromise our service members’ financial safety and security just to allow big box retailers to further pad their record-breaking profits.
“As the leading trade associations representing nearly every credit union or bank, including those primarily serving military-affiliated members and customers, we recognize the vital role financial institutions play in providing financial counseling, creating access to credit, and protecting against fraud.
“The Credit Card Competition Act of 2022 undercuts the financial services system by placing artificial price caps on the interchange fee that merchants pay to defray costs associated with data breaches. Limiting financial institutions’ collective ability to offer robust fraud protection will undoubtably hurt consumers, including service members.
“The first Durbin amendment capped interchange fees on debit cards, leading many financial service providers to cut back on low-cost banking services and free checking accounts. A study from the Federal Reserve of Richmond also found that retailers largely kept any savings from the cap for themselves.
“Congress shouldn’t be in a rush to repeat past mistakes. NDAA should fund our essential military services and continue to protect our nation, not compromise service members’ financial safety.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute roughly 99 percent of all banks, employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5.8 trillion in assets, over $4.8 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.