California’s Credit Unions and Nevada’s Credit Unions have launched a Connect For The Cause grassroots campaign in response to the reintroduced Credit Card Competition Act (CCCA) — calling on leaders, staff, and members to urge their congressional representatives to not support the bill.
President Donald Trump recently signaled his support for the CCCA on social media, and Vice President JD Vance was a vocal co-sponsor of the bill during his past time in the Senate. This increases the likelihood of the CCCA being attached to larger “must pass” legislative packages.
California and Nevada credit union advocates must build upon the groundwork they have already laid during previous legislative sessions when supporters across both states sent more than 10,000 messages to Congress. Credit unions must now strengthen this opposition to make sure the voices of their members aren’t ignored over the messages of large retailers on Capitol Hill.
The CCCA would force financial institutions to offer at least two routing networks for credit card transactions. Opponents argue this allows retailers to prioritize the cheapest network over the most secure. Industry experts point to the 2011 Durbin Amendment as a cautionary tale, which applied similar mandates to debit cards.
Since that amendment took effect, fraudulent debit transactions have doubled, according to America’s Credit Unions. Expanding these mandates to credit cards would further jeopardize consumer data privacy and security.
While proponents claim the bill will lower prices at the cash register, research shows that previous interchange mandates resulted in zero savings for consumers, with the benefits instead flowing to big-box retailers. While the bill is marketed as a pro-competition measure, data suggests small businesses could also lose up to $1 billion in card rewards and face reduced access to revolving credit.
Please urge your staff and members to reach out to congressional lawmakers through the California and Nevada leagues’ Credit Card Competition Act (CCCA) campaign today.
