Credit Card Competition Act Faces Pushback from Credit Unions
As thousands of credit union advocates converge on Washington, D.C., America’s Credit Unions has launched a nationwide campaign to urge Congress to reject the Durbin-Marshall Credit Card Competition Act. The campaign, announced February 24, 2026, aims to highlight potential negative consequences for consumers and financial institutions.
What is the Durbin-Marshall Act?
The Durbin-Marshall Credit Card Competition Act proposes mandates regarding credit card routing. Advocates of the bill believe it will increase competition among credit card networks, potentially lowering fees for merchants. But, America’s Credit Unions argues the legislation will ultimately harm consumers.
Concerns Raised by Credit Unions
Scott Simpson, President and CEO of America’s Credit Unions, stated the mandates are “a solution in search of a problem.” The organization’s primary concerns center around potential increases in fraud, rising costs, and reduced access to credit for middle-class families. Credit unions report hearing directly from members expressing these concerns.
The campaign will utilize digital video, online radio, and targeted newsletter placements to reach consumers nationwide. A key component is an advocacy action alert, directing individuals to contact their lawmakers and voice opposition to the proposed mandates.
Targeted Advertising and Lobbying Efforts
Digital advertisements will be strategically placed in the districts of over 70 lawmakers in the House and Senate. Additional placements are planned in the Washington, D.C. Market during the week of America’s Credit Unions’ Governmental Affairs Conference (GAC), taking place March 2-5.
The advertising effort will as well appear in influential policy-focused newsletters, including The Hill Morning Report and POLITICO Morning Money. During GAC, thousands of credit union leaders will directly engage with lawmakers to discuss the potential impact of the routing mandates.
Potential Impacts on Consumers
America’s Credit Unions believes the proposed routing mandates could weaken fraud protections currently in place. They also suggest the legislation could reduce access to credit and increase costs for consumers. The organization is encouraging consumers to learn more and contact their elected officials through its advocacy action center.
Future Trends: The Evolving Credit Card Landscape
The debate surrounding the Durbin-Marshall Act highlights a broader trend of increasing scrutiny on credit card fees and practices. Expect to notice continued pressure from lawmakers and consumer advocacy groups to address concerns about interchange fees and transparency. This could lead to further legislative proposals aimed at increasing competition within the credit card industry.
Another emerging trend is the rise of alternative payment methods, such as Buy Now, Pay Later (BNPL) services. These options are gaining popularity, particularly among younger consumers, and could potentially disrupt the traditional credit card market. Credit unions and banks are responding by exploring partnerships with BNPL providers or developing their own installment payment solutions.
FAQ
Q: What are interchange fees?
A: Interchange fees are fees paid by merchants to credit card issuers for processing transactions.
Q: What is credit card routing?
A: Credit card routing refers to the process of directing a transaction through a specific payment network.
Q: Where can I learn more about the Durbin-Marshall Act?
A: Visit America’s Credit Unions advocacy action center for more information.
Q: What is America’s Credit Unions’ position on the bill?
A: America’s Credit Unions opposes the Durbin-Marshall Credit Card Competition Act.
Pro Tip: Stay informed about legislative developments impacting the financial industry by subscribing to newsletters from reputable sources like The Hill and POLITICO.
What are your thoughts on the proposed credit card mandates? Share your opinion in the comments below!
