Recently lawmakers in the Senate filed an amendment to attach their interchange bill S. 1838, the Credit Card Competition Act, to the National Defense Authorization Act (NDAA). The NDAA is one of a handful of “must pass” legislation in DC, so it’s imperative that we voice our opposition to this bill.
This harmful interchange legislation would extend the debit routing provisions of the 2010 Durbin Amendment to credit cards, and affect the security and efficiency of the interchange system. It will ultimately only benefit big retailers by allowing them them to use the cheapest processing option, with no requirement to keep your data safe or return any savings back to you as a consumer. As a result this could open the door for more potential fraud, and also limit the amount to rewards and benefits you receive on your credit cards.
Why you should care
- Consumers have come to rely on credit cards to build credit and gain access to funds that otherwise may not be available.
- Interchange fees cover the cost of fraud detection, credit monitoring, and fraudulent purchase protection benefiting both consumers and merchants.
- A less secure payment network could therefore raise fraud-related costs for credit unions and banks. The Credit Card Competition Act threatens credit unions’ ability to provide important services to their members – including their ability to offer credit cards.
Houston Federal Credit Union is are asking for your support to contact your members of congress to voice your opposition. Please click on the link below to take action.