Consumers will bear the cost of the big box interchange bill, League of Southeastern Credit Unions and Affiliates President Samantha Beeler wrote in Yellow Hammer, an Alabama news outlet.
"This bill aims to demolish the interchange system that protects your transactions when you swipe your credit card," Beeler wrote. "Not only does the existing payments system help safeguard your personal financial information against hackers and other cybercriminals, but it also empowers your credit union or bank to crack down on fraud and provides the resources to help restore your account balances if they do get compromised due to the unwillingness of others to secure consumer data.
"While your local credit union remains in close compliance with federal law to protect your information, unfortunately other industries, like merchants, are not required to treat your data with the same care or concern, oftentimes resulting in fraud," she added.
Big box retailers have already shown they won't pass interchange savings onto consumers, Beeler notes, referring to the Durbin Amendment.
"According to a study published by the Federal Reserve Bank of Richmond, 98% of merchant savings were never passed down to consumers, and 20% of merchants actually increased costs on their customers," she wrote. "The Credit Card Competition Act is Durbin 2.0 in sheep’s clothing. And, like wolves that learn to sneak around in the guise of their prey, the Credit Card Competition Act makes everyone more susceptible to fraud."