Economic Impact

Back in 2010, the merchant lobby promised that the Durbin Amendment’s debit card regulation would save consumers money—this did not happen. Instead, merchants pocketed the savings and left consumers holding the bag. According to the Federal Reserve Bank of Richmond, 98.8% of merchants failed to pass-through the savings realized from debit regulation to consumers, and over 20% of merchants actually increased their prices. 

The largest retailers are now asking Congress to extend this failed government policy to credit cards and line the pockets of big box retailers when consumers are hurting. Across the country everyday folks rely on credit cards to make life happen, from paying for groceries and school supplies to covering emergency car repairs or medical expenses. Credit cards offer robust security, fraud protection, and access to credit that may not otherwise be available. 

How does interchange help consumers?

Interchange keeps consumers, retailers, and financial institutions safe. Interchange fees, which are only a fraction of a cent per dollar transacted, make this possible. 

Consumers have come to rely on credit cards to build credit and gain access to funds: 

• 75% of credit unions offer credit building credit cards, ensuring that more people have access to our nation’s economy. 
• The average line of credit on a credit card is $8,000.
• On average a credit union member holds 3.8 credit cards.

If merchants have their way, community financial institutions will have to raise the cost of these low-cost loans, leading to less spending power for consumers and possibly the reduction in important credit building and educational programs offered by financial institutions. 

Contact Congress: Let them know that interchange works!

The current credit card system ensures that you have safe, affordable credit with nearly any store in the country. That means that retailers have access to more customers like you. Don’t let retailers put their profits ahead of your finances.  

Oppose the Credit Card Competition Act: Protect consumers, small businesses, and community financial institutions!