McLean Joins Call to Action in Opposition of Proposed Interchange Bill
Subject: Action Alert: Interchange legislation
I want to share there is a national action alert in opposition to the Credit Card Competition Act which would change the interchange system by allowing merchants to bypass established secure payment networks. We strongly oppose this legislation, as it would bring further financial benefits to big box retailers at the expense of consumers. To participate in the call to action, use this link.
The legislation proposes new credit routing mandates that would give retailers—not consumers—the power to decide which credit card network is used—all to increase the bottom line of mega retailers. Consumers, small businesses, and small community financial institutions will lose the most if this happens. In short, routing mandates on credit cards will lead to less secure, less innovative, and higher-risk transactions for American consumers.
Learn more about this legislation which can be summarized as follows:
- Consumer Choice for Credit Cards Would Disappear
- Cybersecurity Will Be at Risk
- Prices Will Rise for Consumers
- Credit routing mandates would hurt small businesses
- Routing mandates reduce merchant satisfaction
- Small financial institutions will face higher costs.
- Small financial institutions are harmed even with exemptions.
We encourage your credit union to participate in this action alert and CCUA/CUNA will keep you apprised of future developments on this issue.
Cooperative Credit Union Association, Inc.