WASHINGTON AND INDUSTRY BRIEFS Everything old is new again.” This quote has been attributed to several different people, including Winston Churchill and Mark Twain, but no matter who first said it, the sentiment is real for credit unions during the 2023 legislative session. NAFCU has joined with several other financial services trade organizations to educate legislators once again about the flaws in the Credit Card Competition Act (CCCA) of 2023—or, more appropriately, the Big-Box Bailout—that was reintroduced in both the Senate and House in June. Lawmakers are seeking to extend the 2010 Durbin Amendment, which set new routing requirements on debit card transactions to lower interchange rates, to include credit card transactions. This is essentially the same legislation that NAFCU was able to successfully keep from moving forward last year. The combination of credit union, community bank and other financial services trade organizations working tirelessly to prevent this legislation from passing is a testament to the importance of the issue for those of us who advocate for the financial well-being of all Americans. The NAFCU Government Affairs team has been aggressively setting meetings FIGHTING INTERCHANGE LEGISLATION—AGAIN By Greg Mesack, NAFCU Senior Vice President of Government Affairs with members of the Senate and House to let them know why this legislation is bad for the everyday consumer. Credit unions are proud that they offer entrylevel access to members with free checking accounts, free credit cards that provide a 30-day unsecured loan for emergencies, and robust rewards programs. The CCCA is designed to lower rates for merchants and retailers with no regard to what happens to working class communities. The retail industry is suggesting an anti-trust consideration as support for the legislation, but this is a dubious argument at best. There is competition among payment networks for credit card transactions, allowing merchants to choose to accept or not accept different payment methods including Visa, Mastercard, Discover, American Express, Square and PayPal based on interchange rate fees. Consumers also have a variety of options to choose cards and networks based on their trust and relationship with the issuing organization, rewards and benefits offered, and knowledge that their data is secure and their privacy is protected. Allowing retailers to dictate a processing network based on lowest cost regardless of consumer preferences exposes credit union members to potentially less secure networks, and it also reduces a non-interest stream of revenue for credit unions. Not only do these funds allow credit unions to reinvest in systems to protect members, but they are also used to subsidize products such as free checking accounts, low fees and interest on loans, and financial wellness programs. These are all key offerings by credit “The combination of credit union, community bank and other financial services trade organizations working tirelessly to prevent this legislation from passing is a testament to the importance of the issue for those of us who advocate for the financial well-being of all Americans.” “ 8 THE NAFCU JOURNAL September–October 2023
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