A bill introduced in Congress that would allow merchants to bypass established secure payment networks and instead route payments through an unaffiliated network has drawn concerns from CUNA, leagues, and credit union leaders.
“The so-called Credit Card Competition Act is nothing more than a massive financial windfall for big box retailers at the expense of consumers,” says CUNA President/CEO Jim Nussle. “This legislation would jeopardize access to safe, affordable credit.”
Interchange fees cover the costs of fraud detection, credit monitoring, and fraudulent purchase protection, which keeps consumers, merchants, and financial institutions safe.
In this episode of the CUNA News Podcast, CUNA Managing Editor Jennifer Plager speaks with Richard Gose, CUNA’s chief political officer, and Madison Rose, CUNA’s director of advocacy and counsel.
They discuss the bill’s details and how it’s different from previous legislation, the impact the bill would have on credit unions and members, CUNA’s response, and more.
In this episode:
0:58: Background about interchange
2:10: What’s included in the interchange bill
4:22: What this means for credit unions
8:45: The impact on members
9:30: CUNA’s response
11:32: What’s next
13:13: Winners and losers