Credit Unions Must Remain Vigilant Fighting CCCA

Posted by Madeline Robertson on November 26, 2024

If last week’s Senate Judiciary Committee hearing on interchange is any indication of how key Senators feel about VISA, Mastercard, and the Credit Card Competition Act, we cannot let up advocating against this bill. 

Last Tuesday the Senate Judiciary Committee hosted a hearing on interchange, called “Breaking the Visa-Mastercard Duopoly: Bringing Competition and Lower Fees to the Credit Card System”. And committee members’ comments towards the card issuers were harsh. 

In his opening remarks, Chairman of the Committee Senator Dick Durbin (D-IL.), contended that there is a “hidden contributor to the high price” consumers pay “on everything from furniture to eggs.” This hearing was held without an invitation to any representative of the credit union movement. As such, America’s Credit Unions sent a policy letter outlining the damaging nature of the Credit Card Competition Act to the members of the Judiciary Committee ahead of the hearing. Senator Durbin scheduled the hearing although the Credit Card Competition Act will likely not get called to a vote during this lame duck period.  

 Senator John Kennedy (R-LA), who also sits on the Senate Banking Committee, said, “Let me just say this to all of you: I don’t know how we vote if this bill came up today. Visa and Mastercard and the retailers need to sit down and work this out. Because if you don’t, Congress is going to do something.” 

The tone of the hearing was intense and not favorable for the Visa and Mastercard leaders that were in attendance and testifying before the committee. Members of the Committee grilled Visa and Mastercard on the swipe fees both companies charge merchants and consumers. This is when Senator John Kennedy’s warning came into play, followed by other senators who shared similar sentiments to the credit card companies. Senator Thom Tillis (R-NC), although he has opposed the bill, expressed that small businesses have a legitimate concern and that if the credit companies and retailers don’t work towards a solution on their own, congress will have continued pressure to step in. Additionally, Senator Lindsey Graham (R-SC) said, that the credit card companies were “having a hard time convincing me that the fees are to the advantage of the consumer”.  

The GoWest Advocacy Team sent out a Call to Action, asking our community of credit union leaders/advocates to reach out to members of Congress to inform them of how this legislation would directly negatively impact credit union members. This includes the reduction of services for members, making payments less secure, and reducing access to credit card and card services that credit union members depend on. Our credit union advocates responded to the call to action with 588 messages sent. Thank you for your advocacy and participation in these impactful initiatives; we know our work must continue.

Although it is not expected that this bill will move before the swearing in of the 119th Congress, GoWest continues to monitor it as Senator Durbin could still try to attach it to must-pass legislation like year-end spending or defense budget bills. This underscores the need for continued advocacy. Please take a moment to again reach out to your Senators to educate them on the pitfalls of this legislation, 

Posted in Advocacy on the Move, Federal Advocacy.