ICBA-opposed legislation to impose credit card routing restrictions would disproportionately benefit the nation’s top five businesses and put small retailers at a further competitive disadvantage, according to a new study.

Details: The study from University of Miami finance professor Indraneel Chakraborty said the Credit Card Competition Act (S. 1838/H.R. 3881) would:

  • Result in a transfer of approximately $2.9 billion from issuers and cardholders to retailers, almost all of which would accrue to retailers with $500 million or more in annual sales.

  • Cost small businesses more than $1 billion in lost rewards as well as a decline in access to credit, further diminishing their ability to compete with larger businesses.

Background: Led by Sens. Richard Durbin (D-Ill.) and Roger Marshall (R-Kan.), the legislation would allow merchants to process credit card transactions based solely on which network offers them the lowest cost.

Grassroots Campaign: ICBA continues calling on community bankers to urge their members of Congress to oppose the bill.