The Credit Card Competition Act is a a “trojan horse” bill that put big retailers ahead of hard-working consumers, Dakota Credit Union Association President/CEO Jeff Olson wrote in Inforum this week.
"Credit unions are helping their members navigate through these times of uncertainty, and the credit card system is a crucial part of this. It’s a system that has worked for years; a system that consumers want, and merchants need," he wrote. "Credit unions and other card issuers provide fraud protection, card replacement, and cover losses from security breaches with the interchange fee that is added on each swipe. Generally, this is a few cents per transaction; businesses already know this and have priced their merchandise to cover these costs. At most point of sales, consumers choose payment options while merchants get funds authorized, cleared and settled immediately.
"The Credit Card Competition Act puts all that in jeopardy," it adds.
Olson notes that secure transactions, fraud prevention, and financial privacy are all at risk with the bill.
"This bill—with all the problems mentioned above—hasn’t had a single congressional hearing, but its sponsors are trying to tack it onto important funding bills without a concern or study entered into the congressional record," he wrote. "The bill’s sponsors are trying to run this through in the closing days of Congress rather than engaging in thoughtful discussion about potential negative effects."